Sebi imposes two-year ban on individual for fraudulent trading
Sethna executed trade with an aim to artificially raise the price of the scrip.
Sebi conducted a probe in the trading of Dhenu Buildcon shares for the period from August 2011 to May 2015 and found that Jayant Indulal Sethna indulged in fraudulent and unfair trade practices in the securities market and thereby violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulation.
Sethna executed trade with an aim to artificially raise the price of the scrip and to create a false and misleading appearance of trading in the scrip in order to lure gullible investors in the market, the Securities and Exchange Board of India (Sebi) said.
"Moreover, apart from stating that the sell orders were not authorized by him, the noticee (Sethna) has not brought out as to who was otherwise involved in the manipulation," it added.
Consequently, the regulator has restrained Sethna from accessing the securities market for a period of two years.
Besides, during the period of restraint, the existing holding, including units of mutual funds of the person would remain frozen.
"The order shall come into force with immediate effect," it added.