Meen Been Elastomers fined Rs 10L

Market regulator Sebi today imposed a penalty of Rs 1000000 on Meen Been Elastomers for allegedly indulging in fraudulent trading practices in shares of Asian Star Company Limited (ASCL). The Securities and Exchange Board of India (Sebi) has alleged that Meen Been Elastomers indulged in circular/reversal synchronised trades with other brokers and clients in ASCL shares. After taking into consideration all the facts and circumstances of the case,Sebi said it was imposing “a penalty of Rs ten00000...on the Noticee (Meen Been Elastomers) which will be commensurate with the violations committed by him “. In a probe,Sebi noticed a spurt in the price ASCL shares during the period from October 10,2008 to November 20,2008. During the same period the benchmark Sensex had dropped over 19%. Sebi alleged that Meen Been Elastomers had carried out synchronised trading in scrips of ASCL through brokers Triveni Management Consultancy Services. According to the regulator,the intention of Meen Been Elastomers was to create artificial volume in the scrip of ASCL and to influence the price of the scrip. Noting that default by the entity was repetitive in nature,Sebi said there was substantial number of such trades repeated over a number of days during the investigation period. Meen Been Elastomers had connections with the entities of Mehta group through Triveni and executed large number of synchronized trades. Last month,Sebi had slapped a fine of Rs 3000000 on Sunil Mehta,one of the entites of Mehta group and alleged him to be main conspirator behind the synchronised trading.