SEBI Imposes ₹30 Lakhs Penalty On 11 Entities For Manipulative Trading In Veer Global Scrip

On 22 April 2026, the Securities and Exchange Board of India (SEBI) imposed a consolidated penalty of Rs. 30 lakh on 11 entities for engaging in fraudulent and manipulative trading in the scrip of Veer Global Infraconstruction Ltd, in violation of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003.

Adjudicating Officer (AO) Sudeep Mishra passed the order and held that such manipulative trading patterns undermine market integrity and warrant deterrent penalties. He observed:

“in my view, market misconduct involving such manipulative trades pose serious risk to orderly functioning of the securities market and affect the market integrity. Such violations deserve suitable penalty commensurate with the violations committed so as to act as a deterrent.”

SEBI initiated the adjudication following an investigation into trading activity between March 2021 and September 2022, which revealed abnormal price and volume movements in the scrip. The regulator identified multiple entities as a connected group based on common addresses, financial transactions, call data records, and off-market transfers.

The investigation divided the trading period into four phases, marked by price rise, sudden surge, decline, and subsequent recovery. SEBI found that the Noticees executed synchronized trades, reversal trades, and inter se transactions that collectively influenced the price and volume of the scrip.

The regulator observed that these trades contributed significantly to the Last Traded Price and created a misleading appearance of genuine market activity. It held that coordinated trading among group entities led to artificial price discovery and inflated volumes.

Noticees 1 to 5 did not file replies to the show cause notice. SEBI rejected the argument that trading activity should be assessed individually and held that:

“...the trading of all the Noticees have to be viewed as a group in so far the connection between the Noticees had been reliably established based on UCC/KYC document/ Application form, call data records, bank account statements and the statement recordings of the Noticees themselves.”

The AO further concluded:

“In view of the foregoing, I find that the allegation that Noticees 1-11 manipulated the price of the scrip of Veer Global Infraconstruction Ltd and indulged in an act which created misleading appearance of trading amounting to the manipulation of the price and volume of the scrip during the investigation period, stands established.”

Accordingly, SEBI held that the Noticees violated the SEBI Act, 1992 and the PFUTP Regulations, and imposed a consolidated penalty of Rs. 30 lakh.