Market watchdog Sebi has slapped a total fine of Rs 8 lakh on three individuals for indulging in fraudulent trades in shares of various companies back in 2009.
The case relates to manipulative trading in scrips of -- Allcargo Global Logistics, KSL & Industries, Mavens Biotech, Panoramic Universal, Rasi Electrodes, Sat Industries, Ushdev International, KBS Capital Management, Lotus Eye care Hospitals, MVL Ltd and Anil Products and Asian Star Company.
In three separate orders, the Securities and Exchange Board of India (Sebi) has imposed a penalty of Rs 3 lakh each on Manish Mathur and Bhavesh Kothari, while it has slapped a fine of Rs 2 lakh on Hitesh Mahendra Jain.
Sebi found that the three individuals while acting in collusion with others had executed synchronised/circular trades that led to creation of artificial volumes and also influenced the price of the companies shares.
Sebi based on certain alerts had conducted probe into the manipulative trades executed on the BSE by certain connected entities referred to by the regulator as 'Mehta Group' for the period March 1, 2009 to December 15, 2009.
The three individuals were found to be part of the Mehta Group.
Sebi said that "such manipulative transactions may encourage unscrupulous elements to take undue advantage and disturb the fair functioning of the securities market"
It noted that the three had not "repetitively" indulged in such irregularities/violations.
