Sebi slaps Rs 22 lakh penalty on two people for trade frauds

Sebi has imposed a total penalty of Rs 2200000 on two individuals for fraudulent dealings in the shares of 12 companies as well as failing to comply with the market regulator's summons.Further, it imposed Rs 100000 each on them for failing to comply with the summon.Both had fraudulently traded in shares of -- Allcargo Global Logistics, Asian Star Company , KSL and Industries, Mavens Biotech Ushdev International , KBS Capital Management, Lotus Eye care Hospitals, MVL Limited and Anil Products.In the similar-worded orders, Sebi noted that Hankare and Jain were part of 'Mehta Group' entities.Sebi said that both had colluded with other entities of the group and "indulged in synchronised/ structured/ circular trading that created artificial volumes in the said scrips, as well as influencing the price of the scrips".On their failure to respond to the summons, the regulator said both had "failed to personally appear before the Investigating Authority in non-compliance with the summons" issued to them.Sebi had probed the irregularities in stock trading of the 12 firms from March 1 - December 15, 2009. It found a huge change in price of these shares during the period.The investigation revealed that the Mehta Group entities traded in the shares of the companies on behalf of themselves and/or used trading accounts of other linked persons to trade in synchronised, circular, reversal and fictitious manner to manipulate the price and volume of the scrips.