Sebi settles fraud trade cases with 2 individuals

Markets regulator Sebi has settled cases related to alleged fraudulent trading in the shares of Maharashtra Polybutenes on payment of over Rs 15 lakh by two individuals.

According to two separate Sebi orders dated January 25, Piyush P Avlani and Ketan H Doshi paid Rs 9.52 lakh and Rs 5.71 lakh, respectively, to settle the cases.

The regulator had initiated adjudication proceedings against the two individuals for entering into synchronised trades thereby creating a misleading appearance of trading in the shares of Maharashtra Polybutenes during the period from February to July 2009 and violating PFUTP (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations.

While the proceedings were in progress, Avlani and Doshi had submitted applications to settle the same.

The settlement terms proposed by the individuals were placed before the regulator's High Powered Advisory Committee (HPAC), which recommended the cases for settlement on payment of Rs 9.52 lakh by Avlani and Rs 5.71 lakh by Doshi.

On January 16, both the individuals paid the respective settlement amounts, following which the Securities and Exchange Board of India (Sebi) disposed of the adjudication proceedings against them.

However, the regulator said if any representation made by Avlani and Doshi is subsequently found to be untrue, proceedings could be initiated against them.