Sebi slaps Rs 7 lakh fine on 4 entities in fraud trading case

Market regulator today slapped a fine of Rs 700000 on four individuals for their alleged role in fraudulent trading practices in the shares of Empower Industries India Limited (EIIL).In its order, Sebi Securities and Exchange Board of India ) said a penalty of Rs 400000 has been imposed on Prasad Tandel and Rs 100000 each on Shila Suryavanshi, Vithalbhai Gajera and Prakash D'Souza.The matter related to a probe conducted by Sebi in the shares of EIIL during February 16 - March 11, 2005.The regulator found that the company's share surged from Rs 81 to Rs 113 during 18 trading days and total trading volume was 2.1700000 shares.Passing an order against Tandel, Sebi said he failed to disclose about the acquisition and disposal of share of Empower Industries by him to the concerned stock exchange on various occasions within the prescribed timeframe.Besides, the regulator said Tandel and three individuals --Suryavanshi, Gajera and D'Souza-- were part of the Group along with the Promoter-Director, Devang Master that carried out transactions in the market leading to a rise in the volume of the scrip."The noticee (Tandel, Suryavanshi, Gajera and D'Souza) being part of the Group along with the Promoter-Director, Devang Master carried out transactions in the market that led to a rise in the volume of the scrip and thereby induced the gullible investors," Sebi said.Sebi had found that Master transferred 2.1300000 shares representing 42.60% stake by off market transfers to various entities.