Sebi slaps fines on three persons for fraudulent trades

Market regulator Sebi has imposed a fine of Rs 22 lakh on one Manish Ratilal Shah for alleged fraudulent trading in shares of four firms -- Winsome Textile, Supertex Industries, Aarey Drugs and Riba Textiles.
At the same time, through two separate orders, Sebi has also slapped "a penalty of Rs 3 lakh" each on one Jagdish Ramanlal Patel and one C Shah Champaklal for fraudulent trading in shares of Aarey Drugs and Pharmaceuticals.
The Securities and Exchange Board of India (Sebi) has found that Manish Ratilal Shah had in collusion with the some other connected entities executed synchronised and reversal trades in scrip of the four companies.

This had resulted in creation of artifical volumes in the shares leading to a false and misleading appearance in trading of the scrips.
Accordingly, in an order dated September 9, the market regulator has imposed "a consolidated penalty of Rs 22 lakh on Manish Ratilal Shah".
Similarly, based on its probe, Sebi also concluded that Patel and Champaklal "had executed synchronised trades in the scrip of Aarey Drugs and Pharmaceuticals Ltd" which had resulted in creation of artificial volume in the shares of the company leading to false and misleading appearance of trading in the scrips.
The case relates to Sebi probe into the trading in shares of the four companies including Aarey Drugs and Pharmaceuticals for the period January 1-August 31, 2009.

Sebi probe observed that price and volume of the scrips, which are listed on the BSE, had increased significantly during the January-April 2009 period.