The Securities and Exchange Board of India (SEBI) took up 94 new cases for investigation of an alleged violation of securities market regulations in the last financial year.
In its annual report for 2020-21, the capital market regulator said that it completed an investigation of 140 cases during the year.
“During 2020-21, 94 new cases were taken up for investigation and 140 cases were completed in comparison to 161 new cases taken up and 170 cases completed in 2019-20,” it said.
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The total of 94 cases includes 41 instances of market manipulation and price rigging, 30 cases of insider trading, 3 cases pertaining to takeovers. Around 20 cases were in the ‘miscellaneous’ category, which includes alleged violations of listing conditions, disclosure requirements, SCRA, preferential allotment requirements, and violations by statutory auditors, among others.
“During 2020-21, 46 cases (32.9 percent) pertained to market manipulation and price rigging, 40 cases (28.6 percent) pertained to insider trading, four cases (2.9 percent) pertained to takeovers, two cases (1.4 percent) pertained to ‘issue’ related manipulation and 48 cases (34.3 percent) pertained to other violations of securities laws,” the annual report said.
The SEBI noted that after completion of the investigation, enforcement action is initiated wherever violations of securities laws relating to the securities market are observed. Action is decided based on the principles of objectivity, consistency, materiality, and quality of evidence available, after thorough analysis and appreciation of facts.
The actions include issuing an administrative warning, initiating inquiry proceedings against registered intermediaries, initiating adjudication proceedings for levy of monetary penalties, passing directions under Section 11 of the SEBI Act, and initiating prosecution, it added.
SOURCE:IANS
