 "Sebi slaps Rs 7 lakh fine on individual for fraudulent trading")
In its order dated July 31, Securities and Exchange Board of India (Sebi) has observed that Chirag Tanna had "executed synchronised trades on BSE in the scrip of JDIL and indulged in non-genuine/fraudulent transactions which resulted in creation of artificial volume and manipulation of the price of the scrip of JDIL".
The market regulator said it is imposing "a penalty of Rs 7 lakh on Chirag Tanna" for his violation of norms on prohibition of fraudulent and unfair trade practices.
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The case relates to a Sebi probe in the trading of the scrip of JDIL for the period from May 4, 2005 to May 26, 2005 and May 10, 2005 to September 02, 2005 respectively, wherein it was observed that there was an unusual spurt in the price and volume in the company's shares.
As per Sebi's show cause notice, Tanna in collusion with certain other entities referred by regulator as 'Nabera Group' had executed synchronised trades and self trades which had resulted in creation of artificial volume and manipulation of the share price of JDIL.
"It is observed that noticee (Tanna) has executed self trades for 2,525 shares accounting for 0.044% of the total volume traded during the investigation period and 0.47% of his own total buy during the investigation period," Sebi noted.
"In view of the same noticee's submission may be accepted," it added.