Some relief for Vakrangee, SEBI slaps notice on Abhirati

In an adjudication order passed by SEBI on February 21, 2018, against Abhirati Trading on suspicion of violation of various provisions of securities laws, has imposed a penalty of Rs 9.5 lakh. Earlier SEBI had conducted investigation against the company for disclosure lapses in the matter of shares of Vakrangee. Shares of Vakrangee has remained volatile in the last couple of weeks on the rumours that there has been a showcase notice and investigation against Vakrangee limited and its promoters with respect to price and volume manipulation, however, nothing has come from SEBI in this matter till now.
The adjudication letter by SEBI against Abhirati Trading, also says that the matter is related to only disclosure lapses of shares holding in the matter of Vakrangee Ltd. There has been no mention of any price or volume manipulation events. This is for the pure lapse on shareholding disclosure norms. SEBI found that the shareholding of Abhirati in Vakarangee got reduced on May 28, 2013, by 2.31 percent and by 2.07 percent on September 4, 2013. SEBI had served a show cause notice. However, it failed to make these disclosures and accordingly Sebi has levied a fine of Rs 9.5 lakh on Abhirati. Meanwhile, Vakrangee has clarified that SEBI did never issue a notice to them on this matter and rubbished all the ongoing rumours.