The Securities and Exchange Board of India (Sebi) had conducted an investigation in the shares of Videocon Industries for the period from May 1, 2006 to March 31, 2008 to examine any possible violation of capital market norms by certain entities including Sheth.
It was alleged that Sheth, by executing self-trades, had violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations.
In self-trades, the same entity is both the buyer and the seller. As such these trades do not represent a real change in beneficial ownership of the securities.
Following the probe, the regulator had initiated adjudication proceedings against Sheth.
"In the instant proceedings, considering the volume of self-trades executed by noticee (Sheth) vis-a-vis the market volume and its trading volume on the dates of self-trades, I note that the contribution of self-trades to market traded volumes is minuscule and therefore cannot be said to have created artificial volume," Sebi Adjudicating Officer B J Dilip said.
Dilip also said the charge of self-trades executed by Sheth in terms of artificial volumes "does not get established".
Accordingly, Dilip disposed of the adjudication proceedings initiated against Sheth.
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