Sebi imposes Rs 1.25 cr fine on 3 entities

Market watchdog Sebi today slapped a total fine of Rs 1.250000000 on Sterling Greenwoods Limited (SGWL), Paksh Developers and one of their senior official for alleged irregularity in the scrips of SGWL.In its order, the Securities and Exchange Board of India (Sebi) has imposed the penalty on Sterling Greenwoods, Paksh Developers and Anurag Agarwal, then Managing Director of both companies for alleged irregularity in the scrips of SGWL in 2009.Individually, Sebi has slapped a fine of Rs 1000000 on SGWL for violating norms related to prohibition of fradulent trading, while it has imposed a penalty of Rs 8.500000 and Rs 700000 respectively on Paksh Developers and Agarwal for alleged frauulent trading in the shares of Sterling Greenwoods and for not comlying with shareholding norms among others.Besides, the regulator has also imposed a cumulative monetary penalty of Rs 10000000 on Paksh Developers and Agrwal payable jointly for failure to make public announcement regarding shareholding disclosures.After witnessing unusual movements in the scrip of SGWL, Sebi had conducted a probe into alleged irregularities during April 1- June 23, 2009.The regulator noted that 15 entities connected to or related with SGWL and to each other (collectively referred to as Hemang Shah Group ), had collectively traded in the shares of the company.It also said that some of these entities had received funds from Sterling Greenwoods and Paksh Developers through Agarwal and ultimately Hemang Shah Group used the funds for trading in the scrip of SGWL and thereby "indulged in manipulative and fraudulent trades which resulted into creation artificial volumes in the scrip of SGWL."