Sebi imposes Rs 64 lakh fine on two entities

Markets regulator Sebi has slapped a total penalty of Rs 6400000 on Aquarian Share Broking Company and Paresh S Shah for indulging in fraudulent trading in the shares of Harita Seating Systems as well as violating brokers' norm.The two entities indulged in irregular trades in the shares of Harita Seating Systems on behalf of their clients and contributed significantly to creation of artificial volume, Sebi noted."Such irregular practices adversely affects the market integrity. Besides, this kind of fraudulent activity seriously affects the normal price discovery mechanism of the securities market," the regulator added.By indulging in such activities, they violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations and code of conduct prescribed for brokers.The capital markets regulator had conducted a probe into the alleged irregularities in share trading of Harita Seating Systems between November 2009 and March 2010 for the possible violation of Sebi norms.The Sebi's investigating authority has sought various informations from these individuals but they failed to comply with the direction.