Fraud deals: Sebi imposes Rs 10 lakh fine on 2 individuals

Sebi has imposed a total penalty of Rs 1000000 on two individuals for alleged fraudulent dealings in the shares of 12 companies including Allcargo Global Logistics, Lotus Eye Care Hospitals and MVL Limited In its order dated March 11, the Securities and Exchange Board of India (Sebi) imposed a fine of Rs 1000000 on Bhavesh Jain and Rakesh Jain which it said is "payable jointly and severally" by both the individuals.The two had fraudulently dealt 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.Sebi said both individuals had colluded with other entities belonging to "Mehta group" and indulged in synchronised/ structured/ circular trading that created artificial volumes in the scrips, as well as influenced its price.The regulator had probed the irregularities in stock trading of the 12 firms from March 1 - December 15, 2009. It found huge changes in prices of these shares during the period.Sebi said it was 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.