Sebi fines individual for fraudulent trading

NEW DELHI: Markets regulator Sebi has imposed a penalty of Rs 1 lakh on an individual for allegedly indulging in fraudulent trading practices in the shares of Millenium Cybertech.

After finding that Abhayraj Rampher Shukla violated various provisions of Sebi PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulation, the regulator imposed a fine of Rs 1 lakh on him.

A probe conducted by Sebi in the share trading of Millenium Cybertech Ltd (MCL) during May-September 2005 found that Shukla had bought 24,200 shares and sold 3,200 scrips of the firm through a stock broker and executed off market transactions of 2.7 lakh shares with various entities.

"Noticee (Shukla) had dealt in the scrip of MCL along with other clients in a fraudulent manner by doing transactions that are not genuine, resulting in the creation of a misleading appearance of trading in the scrip of MCL and manipulating the price of a security.

"Thereby allegedly violated the provisions of... Sebi PFUTP Regulations," the regulator said in an order.