They are facing a fine of Rs 10 lakh each for violating the Prohibition of Fraudulent and Unfair Trade Practices norms.
Sebi in its investigation noted that they are repeatedly executing synchronised trades and created a misleading appearance of trading in the scrip without any intention of change in ownership of the security.
“The Noticees have indulged into synchronised trading by repeatedly placing orders among themselves at the same time (with hardly a difference of a second) and that too the order quantity and price of the buyer is matched with the same amount of order quantity and price of the seller without any partial order execution or order modification,” Sebi noted.
Such synchronised trades constituted 18.55 per cent of the market volume on the BSE and 7.96 per cent of market volume on the National Stock Exchange (NSE) during the investigation period.
The investigation was conducted between December 2011 and October 2014.
