Fraudulent trade: Sebi imposes Rs 10 lakh fine on four individuals

Markets regulator Sebi Monday imposed a total fine of Rs 10 lakh on four individuals for manipulating the share price of Shree Shaleen Textiles Ltd.

Anjana Arun Karwa, Jayeshkumar Narottamdas Gandhi, Bharati Jayesh Gandhi, Deval Jayesh Gandhi are the four facing the penalty, as per Sebi's separate orders.

The regulator had conducted probe from March 2012 to March 2013 relating to the trading activity of the four individuals in the scrip of Shree Shaleen.

Pursuant to the investigation, the regulator found that the four deliberately increased the price of the scrip by placing orders higher than the last traded price (LTP) and created misleading appearance of trading in the scrip.

"...the scheme, plan, device and artifice employed by the Noticees (four individuals) in this case of executing minuscule trades above the LTP in the scrip at irrational prices, tantamount to fraud on the securities market," the regulator said in two separate, but similar worded orders.

By doing so, the four violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices), the Securities and Exchange board of India (Sebi) said.

"...carrying out of such transaction which are fraudulent and deceptive should be suitably penalized for such acts of omissions and commissions," the regulator said.

Accordingly, a fine of Rs 6 lakh was imposed on Jayeshkumar, Bharati and Deval to be paid 'jointly and severally', while Rs 4 lakh fine was imposed on Anjana Karwa.