Sebi slaps Rs 35 lakh fine on six persons in Kaveri Seed case

Markets regulator Sebi Wednesday slapped a total fine of Rs 35 lakh on six persons for indulging in fraudulent trade in the shares of Kaveri Seed.

The regulator conducted a probe from October 2008 to June 2009 after witnessing abnormal increase in volumes of Kaveri's shares.

During the examination, Sebi found that five individuals along with the other connected entities had executed synchronised trades which resulted in artificial volume and led to false appearance of trading in the scrip.

Execution of synchronised trades amounts to fraudulent trade under PFUTP (Prohibition of Unfair Trade Practices) regulations, Securities and Exchange Board of India (Sebi) said and thereby liable for monetary penalty.

Accordingly, Sebi fined Aditya Bangad Rs 10 lakh, Anjana Bangad Rs 7 lakh and Vijay Bangad Rs 6 lakh while Anuradha Bangad, Usha and Vikas Bangad were fined Rs 5 lakh, 3 lakh and 4 lakh respectively.

In a separate order, Sebi fined Rs 3 lakh on three entities to be paid "jointly and severally" for failing to make disclosures under SAST (Substantial Acquisition of Shares and Takeovers) norms for acquiring 10 percent shares in Saianand Commercial.

Under SAST norms, acquirer purchasing more than 5 per cent shares requires to disclose to the company and the exchange where the shares are listed.

The entities are Pawan Madanlal Kothari, Pawan Madanlal Kothari HUF, Priti Pawan Kothari.