Market regulator Securities and Exchange Board of India (SEBI) has imposed total penalties of Rs 45 lakh on nine entities, including the company, its promoter and managing director (MD) and non-executive directors of Gokul Solutions Ltd (GSL).
SEBI directed six of them to pay Rs 2.28 crore for unlawful gains earned by allegedly manipulating the share price of Gokul Solutions Ltd (GSL), with an interest of 12 per cent per annum and barred nine entities for six months.
The nine entities that were fined Rs 5 lakh each are Arrowline Distributors Pvt Ltd, Aryavrat Suppliers Pvt Ltd, Metrocity Suppliers Pvt Ltd, Sourav Builders, Sourav Management Pvt Ltd, Sourav Nursing Home Pvt Ltd, Gokul Solutions, GSL promoter and MD Sanjay Kumar Agarwal and Promoter and Non Executive Director Sunita Agarwal.
A preliminary examination into the trading in the shares of GSL by BSE was forwarded to the SEBI on 28 June 2019, revealing a group of clients connected with the company contributed to the unnatural increase in the price and volume of the scrip of GSL.
SEBI executive director Babitha Rayudu the ordered the MD and promoters to disgorge the gains made at the cost of gullible investors who traded in the securities market in violation of the provisions of the SEBI Act.
SEBI investigation found that certain entities traded in the scrip of GSL during the investigation period, and of them, 31 entities were identified as being connected or related to each other in a certain manner and also with the company or its promoters and directors who had traded in the scrip of GSL during the investigation period.
As per the financial results filed with the Exchange, GSL registered a net profit of Rs 13 lakh for the year ended March 2015. However, its net sales and profit kept declining compared to the previous year's. In FY16-17, GSL registered a loss of Rs 5 lakh.
