Sebi slaps Rs 5 crore penalty on 'Sanghvi group' entities

Market regulator Sebi has slapped a penalty of Rs five crore on ten entities for allegedly indulging in fraudulent activities in shares of four companies including Nakoda Textiles India and Gayatri Projects.
The entities referred by Sebi as the 'Sanghvi Group' had allegedly made a profit of Rs 2.34 crore after indulging in fictitious trading activities such as self trades, intra-day trades and synchronised trades by contributing significantly to the increase in price of scrips of four companies.
The four firms were Nakoda Textiles India, Gayatri Projects, Nandan Exim and Trimurthi Drugs & Pharmaceuticals.
In an order today, the regulator said it is imposing "a consolidated penalty of Rs five crore on the following noticees viz. Rameshbhai V Shah , Dhirajlal V Sanghvi (HUF) , Vishu Enterprise , Sagar Sanghvi , Ashik Sanghvi, Sajjankumar Nanwal , Sunitadevi Nanwal , Govindkumar Varma , Babubhai Desai , Sanghvi Fincap Ltd. Under...The Sebi Act".

"The investigation, inter alia, revealed that the entities of Sanghvi Group were connected to each other in dealing into the buy and sell transactions of the said four scrips amongst themselves," the Securities and Exchange Board of India (Sebi) said in the order.
The trades of the noticees contributed significantly to the increase in price of the said four scrips, it added.
The market regulator had carried out an investigation into the trading activity of Sanghvi Group in the matter of four scrips for the period from July 1, 2009 to January 19, 2010.
According to Sebi the entities have violated the regulator's 'Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market)' regulations.