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The Securities and Appellate Tribunal (SAT) has upheld Sebi's order against an individual related to fraudulent trading in T Spiritual World shares but has reduced the penalty imposed on him to Rs 1 lakh from Rs 2 lakh.
"We do not see any legal infirmity in the order passed by the respondent (Sebi) against the appellant (Vikas Ganeshmal Bengani) but keeping in view the totality of the facts and circumstances of the case and submissions made at the Bar, we reduce the penalty to Rs 1 lakh while upholding rest of the order against the appellant," SAT said in its order dated June 26.
In September, 2012, Securities and Exchange Board of India (Sebi) had slapped a penalty of Rs 2 lakh on Bengani after its probe had revealed that he along with some other entities had dealt in the scrip of T Spiritual World "in a fraudulent and manipulative manner" from July 12, 2004 to February 4, 2005.
These trades had created false and misleading appearance of trading, artificial volume and price manipulation in the scrip facilitating the promoters to offload their stake.
Thereafter, Bengani had approached the SAT challenging Sebi's order.
SAT noted that Sebi's "adjudicating officer himself has not found two main charges against the appellant sustainable".
"However, appellant appears to be having some connection with some of the promoter group members and only for this the appellant has been held to be guilty of violating the law in this regard," it added.
