Mumbai: Capital market regulator SEBI has imposed Rs 12 lakh penalty on two individuals for fraudulent trading in the shares of erstwhile Era Constructions India Ltd (ECIL).
In two separate orders, Securities and Exchange Board of India (SEBI) has slapped a fine of Rs 8 lakh on Sunil Purohit and another Rs 4 lakh on Kapil Chatrabhuj Bhuptani.
"It is noted from the facts made available on record that the noticee had executed synchronised trades in the scrip of ECIL and indulged in creation of artificial volume during the investigation period," SEBI said in the similarly-worded orders dated February 28.
A SEBI probe found a spurt in price and volume in the scrip of ECIL during the period from March 17, 2004 to November 12, 2004.
It was observed during the investigation that some of the stock brokers/sub-brokers and their clients had indulged in several synchronisation of deals in the firm's scrip "in such a manner that led to creation of artificial volumes".
Subsequently, the company had changed its name to Era Infra Engineering Ltd in February, 2008.
SEBI said Bhuptani had carried out synchronised trades for 1.12 lakh shares with a total value of Rs 68.17 lakh.
Purohit had indulged in synchronised trades for a total of 3.59 lakh shares valuing Rs 2.22 crore, it said.