Markets regulator Sebi today slapped a total fine of Rs 17 lakh on six individuals for indulging in fraudulent trading in the shares of Linkhouse Industries.
The regulator had conducted a probe into trading of shares of Linkhouse Industries for the period from June 2004 to December 2008 in three phases.
The probe found that the individuals are connected to each other and have accounted for creation of artificial volume in the scrip of Linkhouse by the way of synchronised trades and reversal trades, Sebi said in an order.
Moreover among the six individuals, five executed self trades with manipulative intent to create artificial volume in the shares, added Securities Exchange and Board of India(Sebi).
By indulging in such activities, the individuals had violated the regulations of PFTUP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, the regulator noted.
Sebi imposed a fine of Rs 3 lakh each on Hemant Madhusudan Sheth, Bhavesh Prakash Pabari, Ankit Rajendra Sanchaniya, Prem Mohanlal Parikh, Mala Hemant Sheth, and 2 lakh fine on Bharat Shantilal Thakkar.