Over 200 fined in KGN, Sylph price rise issue

Mumbai, June 20 Over 200 brokers and traders were fined up to Rs 5 lakh by the Bombay Stock Exchange for speculative trading in the scrips of KGN Industries and Sylph Technologies.

KGN Industries and Sylph Technologies were re-listed on BSE in the Z Category after a gap of six to seven years and witnessed a huge price rise on listing day on account of speculative trading, as there were no price filters imposed on the day of listing for the purpose of price discovery in these scrips.

The traders fined include Anand Rathi Financial Services, Angel Broking, Asit C Mehta, Geojit Financial Services, Motilal Oswal Securities, Prabhudas Liladher, Centrum Broking, Gandhi Securities & Investment, ICICI Securities, Karvy Stock Broking, and Ventura Securities . A total of 222 traders were fined with regard to KGN Industries and 118 for Sylph Technologies.

On May 21 KGN Industries soared to Rs 55,000 on re-listing after seven years. When last traded, in 2001, the Z- Group scrip was trading at a mere Rs 11. As KGN climbed to the "unrealistic" price, the BSE suspended trading of the scrip in the afternoon session as a "proactive surveillance measure".

The very next day, Sylph Technologies too jumped to Rs 800 on its re-listing. The scrip was trading at 80 paise seven years ago. It trimmed its gains and closed the day at Rs 200