Sebi slaps Rs 1.27 crore on 26 entities in Spectacle Infotek case

Capital market regulator Sebi today imposed a penalty of Rs 1.270000000 on 26 entities including a stock broker for indulging in fraudulent activities in shares of Spectacle Infotek Limited (SIL). In a order, the Securities and Exchange Board of India (Sebi) has also imposed a penalty of Rs 500000 each on 25 entities and include two firms -- Gemstone Investments Limited and Rajnandi Yarns Private Limited The rest are individuals.Besides, the market regulator has levied Rs 200000 fine on brokerage firm Arcadia Share and Stock Brokers -- taking the total penalty amount to Rs 1.270000000.Sebi said the 25 entities "by trading amongst themselves indulged in synchronised trades on numerous occasions, resulting in no change of beneficial ownership thereby, created artificial volume in the scrip of SIL which gave a false and misleading appearance of trading in the said scrip".Further, it said that Arcadia "by executing fictitious trades, in the nature of self and synchronised trades, on behalf of its clients has violated...the Broker Regulations".The case relates to a Sebi probe pursuant to detection of a huge rise in the traded volumes and price of SIL shares during the period from May 29, 2009 to April 30, 2010.It was observed that the price of the scrip unusually increased from Rs 41 to Rs 122.62 and the daily high-low traded volume was 36,724 shares to 23.4500000 shares.Of the 25 entities imposed with a penalty of Rs 500000 each, two are firms -- Gemstone Investments Limited and Rajnandi Yarns Private Limited