Sebi slaps Rs 10 lakh fine on two entities for fraud trading

Sebi today slapped a fine of Rs 10 lakh on two entities for fraudulent trading in the shares of Krishna Deep Trading and Investment Ltd (KTIL).

In an order, the Securities and Exchange Board of India (Sebi) said it has levied the fine on one Nakul Vaid and Primrose Trade Pvt Ltd.

The regulator had conducted a probe into trading of scrips of KTIL, now known as Parnax Lab, for the period from August 2010 to March 2011.

The probe found that Primrose was connected to promoters of KTIL during the investigation period.

Besides, Primrose in an off-market transaction transferred shares to Vaid and he created a misleading appearance of increased trading in the shares of KTIL.

Vaid also manipulated the price by trading in the shares of the firm in a manner leading to new high price daily, Sebi said.

By indulging in such activities, the entities violated the PFTUP (Prohibition of Fraudulent and Unfair Trade Practices) regulations, the regulator noted.

"The noticees (Vaid and Primrose) are liable for monetary penalty of Rs 10 lakh for violating norms.. of the PFTUTP," said Adjudicating officer Sangeeta Rathod.

In a separate order, Sebi today imposed a fine of Rs 4 lakh on two entities for executing self trades and thereby violating PFTUP regulations.

Self trades are trades in which both buyer and seller are the same party and do not result in change of ownership. Self trades are prohibited by the markets regulator.