Sebi imposes Rs 44 lakh fine on two brokers

Mumbai: Market watchdog Sebi today slapped a total fine of Rs 44 lakh on two individuals for fraudulent trading in the shares of SKS Logistics as well as violating brokers norms.

The Securities and Exchange Board of India (Sebi), in two separate orders, has imposed a penalty of Rs 22 lakh each on P J Chaudhary and Vijay J Thakkar.

Chaudhary is a broker of BSE, while Thakkar is sub-broker of VSE Stock Services at BSE and NSE.

It was alleged that two brokers had indulged in circular/ synchronised trading in connivance with certain clients. Thus instrumental in creating artificial volume in the scrip which distorted market equilibrium of shares.

According to the regulator, the transactions executed by them or on behalf of their client in the shares of SKS Logistics were "synchronised/circular?and there does not appear to be any genuine trading interest in the said scrips."

Also, they failed to exercise due skill, care and diligence and not maintained high standard of integrity, promptitude, fairness in the conduct of its business as a broker, Sebi said.

In a separate order, Sebi has disposed off case against Gazi Financial Services and Investments in the matter of investor grievance saying the alleged violations could not be do established against it.

It was alleged that Gazi Financial Services and Investments had failed to obtain authentication with Sebi's online complaints redressal system (SCORES) as well as not redressed the grievance of investor.