Market regulator Sebi on Friday barred an individual from the securities market for one year for carrying out fraudulent trading activities in the shares of Maharashtra Polybutene Ltd (MPL) by misusing clients’ securities.
The regulator also debarred the individual, Vishal Vijay Shah, from being employed or associated with any registered intermediary or other registered person dealing in securities market, directly or indirectly and in any other manner, for one year.
The watchdog had conducted an investigation into the alleged irregularities in trading in MPL shares during September 29 to December 31, 2009 period.
It was observed that the individual had transferred 85,500 shares of MPL which were purchased by way of market transactions for his three clients to another set of 13 entities.
Further, there was a repurchase of 83,547 shares from these 13 entities into the accounts of the three clients by way of market transactions.
The individual was found to have indulged in circular trading to create artificial volumes for which he used the accounts of his clients and securities which was in violation of stock brokers regulations, Sebi said in an order.
While passing the order, Sebi said the career of Shah as an individual stock broker is replete with various fraudulent activities such as circular trades, synchronised trades, misutilisation of clients’ funds and securities for which he has been penalised repeatedly from time to time.
His certificate of registration as a stock broker has already been suspended by way of a Sebi order passed in July last year.
The individual has a history of non-cooperation with Sebi, did not comply with the summons and also didn’t appear for cross examination before the regulator, Sebi said in the order while barring him from securities market for one year.
Credit: Stocks-Markets-Economic Times