SEBI v. Raj Kumar Sharma and others (price manipulation, Global Infratech & Finance Ltd, 2022)

Judgment entered

✓ Checked against the primary document on October 8, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, in a single reading of the order; an independent second reading of 60 SEBI records agreed on every field for 56, the four misses being penalty amounts; a later sample of 50 of the SEBI records added on 9 October agreed on every field for 46. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

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A SEBI adjudicating officer fined the issuer Global Infratech & Finance, two of its directors and a group of connected traders for pushing up its share price on the BSE between 2012 and 2014 and for fund links to preferential allottees. The case against about thirty promoter-related sellers was closed without penalty.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

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Total relief

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Alleged gain

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A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The adjudicating officer of the Securities and Exchange Board of India decided the matter on 29 July 2022 after a show cause notice of 8 January 2018. The order covers 45 noticees: seven alleged price-pushing traders led by Raj Kumar Sharma, the BSE-listed issuer Global Infratech & Finance Ltd, two of its directors, and preferential allottees and promoter-related entities. A parallel order of a whole-time member had been issued in July 2021, and a separate adjudication order of February 2022 had already dealt with one other noticee.

The stock was suspended for years, resumed trading in June 2012 after two preferential allotments, and rose from under Rs 8 to a high of about Rs 93 after a split by November 2013 despite modest profits and no significant announcements. SEBI alleged that seven connected noticees repeatedly placed tiny sell orders at ascending prices against large pending buy orders to lift the last traded price, that the company and directors enabled the allotment structure, and that promoters and related entities sold large holdings into the inflated price.

The adjudicating officer found Regulations 3 and 4(1) of the PFUTP Regulations breached by the seven traders, the company, two directors, and five noticees linked to the company through fund transfers. He rejected unsupported claims that the transfers were ordinary loans.

Penalties under section 15HA were Rs 7 lakh jointly and severally on the seven traders, Rs 3 lakh each on the company and two directors, Rs 3 lakh jointly on three connected noticees and Rs 2 lakh jointly on two others, with delay treated as mitigating. The notice against another director and the promoter-related sellers was disposed of without penalty.

The record does not show whether anyone appealed, how much the traders gained, or what investors lost, which the order says could not be computed. It describes no criminal case. The order's penalty table is hard to read, so this record lists the amounts and does not total them.

This library tags the matter as price manipulation (pushing the last traded price). The tagging is ours, not the regulator's.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the order.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Price manipulation — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2022-07-29 SEBI order

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEBI order

The linked release is published by the issuing regulator under its own terms. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added October 8, 2026. submit a correction.