Market regulator Sebi today said it has imposed a penalty of Rs 10 lakh on a Manish Mathur for allegedly indulging in fraudulent trading practices in shares of Asian Star Company (ASCL).
Sebi has alleged that Mathur acted as a link between the connected entities who orchestrated manipulation in the scrip of ASCL. Sebi said it is imposing a penalty of Rs 10 lakh on Mathur "which will be commensurate with the violations committed by him".
Sebi said in a probe it 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 percent.
Sebi said it had observed that certain entities connected to each other had allegedly indulged in circular/reversal synchronised trading in a manner that led to creation of artificial volume in the scrips.
Mathur is alleged to have had connections with the entities belonging to Mehta group, Sebi said. These entities had allegedly executed trades through broker Triveni Management Consultancy Services of which Mathur was the CEO, it added.
Sebi said it noted that Mathur had acted as a link between the Mehta Group entities, financed their transactions to orchestrate manipulation in the scrip and "thereby connived with the Mehta Group clients in manipulating the price and volume of the scrip of ASCL".
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