SEBI found that shares of Empower Industries surged from Rs81 to Rs113 during 18 trading days with the total trading volume at 2.17 lakh shares and Kothari had allegedly been party to the circular movement and aided and abetted EIIL promoter-director Devang Master in manipulating the shares
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) imposed a penalty of Rs2 lakh on an individual for his alleged role in fraudulent trade in shares of Empower Industries, reports PTI.
In its order, SEBI said it is imposing “a penalty of Rs2 lakh on Nilesh Kothari in terms of the provisions... of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations”.
The matter relates to a probe conducted by SEBI in the shares of Empower Industries India (EIIL) during 16th February and 11 March 2005.
In the investigation, SEBI found that the company’s share surged from Rs81 to Rs113 during 18 trading days and the total trading volume stood at 2.17 lakh shares.
Kothari had allegedly been party to the circular movement and had had aided and abetted EIIL promoter-director Devang Master in manipulating the shares of the company.
SEBI noted that Kothari along with Devang had “carried out transactions in the market that led to a rise in the volume of the scrip and thereby induced the gullible investors”.
“...it does not appear to be a mere coincidence that the company made false announcements that facilitated in creating a general interest in the scrip and helped Devang and the noticee in carrying out their nefarious designs,” SEBI said.
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