SEBI imposes Rs12 lakh fine on two for synchronised trade in Era Construction

SEBI imposes Rs1200000 fine on two for synchronised trade in Era Construction To bookmark you need to sign in Both Ghelani and Rathod executed synchronised trades in the scrip of Era Construction and indulged in creation of artificial volume in 2004 Mumbai Market regulator Securities and Exchange Board of India (SEBI) has imposed a total penalty of Rs1200000 on two entities for alleged fraudulent trading in the shares of erstwhile Era Constructions, reports PTI. "...impose a penalty of Rs 200000 on Vijay Rathod... It further said that monetary penalties were imposed "... for the violation of the provisions of regulations... of SEBI (prohibition of fraudulent and unfair trade practices relating to securities market) Regulations, 2003," the regulator said today. Probe carried out by SEBI observed a spurt in price and volume in the scrip of Era Constructions (India) Limited during the period from 17 March 2004 to 12 November 2004. Subsequently, the company has changed its name to Era Infra Engineering Limited in 2008. "...noticee (Ghelani and Rathod) had executed synchronised trades in the scrip of Era and indulged in creation of artificial volume during the investigation period," SEBI said in its orders. SEBI noted that Ghelani carried out synchronised trades for a volume of 4.6700000 shares with a total value of Rs2.920000000, while Rathod was indulged in synchronised trades for a 1.0300000 scrips with a valuation of Rs66.2500000. The regulator said the two entities had carried out numerous trades in Era Constructions' scrip on a daily basis for several trading days and the traded quantities were also high. The fact that such transactions took place repeatedly over a period of time reinstates the non-genuine nature of such trades.