Markets regulator Sebi Thursday barred Nishith M Shah HUF from securities market for two years for indulging in fraudulent trade practices in the shares of Shree Shaleen Textiles.
Sebi conducted an investigation in the scrip of the company between November 2011 and November 2014 and found that Shah in spite of having substantial holding of shares, was repeatedly entering sell orders for miniscule quantity at price higher than last traded price (LTP) of the scrip.
"Noticee by executing the... sell trades has manipulated the price of the scrip and has created a misleading appearance of trading in the scrip," Sebi said in an order.
By doing so, Shah violated the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) provisions.
Accordingly, the regulator has banned Nishith M Shah HUF for two years from securities market.
In a separate order, the Securities and Exchange Board of India (Sebi) has imposed a penalty of Rs 2 lakh on L V Ramnarayan, promoter of Swarnajyothi Agrotech and Power for disclosure lapses regarding change in its shareholding in the firm.
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