Market regulator Sebi today imposed a total penalty of Rs 12 lakh on two entities for alleged fraudulent trading in the shares of erstwhile Era Constructions. ".impose a penalty of Rs 2 lakh on Vijay Rathod.impose a penalty of Rs 10 lakh on Tejash Ghelani," Securities and Exchange Board of India (Sebi) said in two separate orders. 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) Ltd during the period from March 17,2004 to November 12,2004. Subsequently,the company has changed its name to Era Infra Engineering Ltd 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 4.67 lakh shares with a total value of Rs 2.92 crore,while Rathod was indulged in synchronised trades for a 1.03 lakh scrips with a valuation of Rs 66.25 lakh. 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.
