Amid mounting pressure from investigating agencies, Trinamool Congress national general secreatary Abhishek Banerjee faces fresh controversy surrounding his company, ‘Leaps and Bounds’.
An investigation by the Securities and Exchange Board of India (SEBI) has revealed that Leaps and Bounds’ shares were traded at prices exceeding their designated value, benefiting a select few individuals.
Consequently, SEBI has imposed a fine of Rs 7 lakh on the company in accordance with PFUTP (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market Regulations). Leaps and Bounds has also been directed to deposit the fine within 45 days.
According to SEBI’s investigation, multiple irregularities were found in investment market transactions of Leaps and Bounds. Acting on these, SEBI appointed an investigating officer to probe the case.
The investigation primarily examined whether provisions under SEBI regulations 3(a), 3(b), 3(c), 3(d), and 4(1), 4(2)(a) were violated.
As per SEBI rules, a penalty is usually imposed if such violations are proven. The investigating officer has also questioned whether the penalty should also take into account the disclosures made by the company at the time of investment.
Additionally, SEBI’s report revealed instances of ‘reversal trading’ in at least 48 occurences.
The report was compiled after scrutinising transactions that took place between April 2014 and September 2015. During the investigation, SEBI stated that it had identified approximately 81.83 percent of the total 291,643 transactions executed on the Bombay Stock Exchange.
The Enforcement Directorate (ED) has also initiated an investigation into the financial transactions of Leaps and Bounds. A report spanning nearly 5,000 pages, detailing the company’s financial irregularities, was submitted to the Calcutta High Court. The investigation into this case is ongoing.