 "sebi")
Markets regulator Sebi on Monday imposed a fine of Rs 50 lakh on an individual for indulging in fraudulent trading activities as a "conduit' with respect to initial share sales of two companies more than a decade ago.
The companies -- IDFC Ltd and Sasken Communications Ltd -- had come out with their respective Initial Public Offerings (IPOs) in 2005. Sebi had investigated alleged irregularities in the dealings of shares of IDFC and Sasken during their IPOs.
Imposing the fine on Bhanuprasad Dipakkumar Trivedi (noticee), the watchdog said the individual was the front entity/ conduit and acted in a manner to enable two other entities to benefit by cornering the shares of IDFC and Sasken and later disposing them at higher rates.
"However, from the scheme/manipulation orchestrated by the above entities, it was evident that the Noticee was roped in to aid and abet the operators/financiers only to complicate the web of entities involved in the IPO scam and obfuscate the issue with a view to avoid detection by regulatory agencies.
"From the material available on record, it is established that the noticee had acted as conduit in relation to the two IPOs viz. IDFC and Sasken," the 38-page order by Sebi's Adjudicating Officer Suresh B Menon said.
According to him, the impugned transaction had taken place in 2005 and around 17 years have elapsed since then. Also, the noticee was restrained/ debarred for a period of one year through an order back in 2009, he noted.
However, the adjudicating officer said the noticee had allowed the two entities -- Jayesh HUF and Roopal -- to corner the shares of IDFC and Sasken pursuant to their IPO issues, which was detrimental to the interest of the retail investors.
The noticee violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations.
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