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Sebi settles fraudulent trading charges against 2 individuals


Mumbai: Market regulator Sebi has settled charges of fraudulent trading against two individuals after they paid a total of around Rs 20 lakh in settlement fee.

The two individuals have violated PFTUP (Prohibition of Fraudulent and Unfair Trade Practices) regulation in the matter of Arihant Foundations & Housing Ltd.

Laxmi M Chaturvedi paid over Rs 17.87 lakh while Manoharlal Chaturvedi made a payment of Rs 2 lakh towards settlement charges.

The Securities and Exchange Board of India (Sebi), in an order passed yesterday, said that alleged violation with the provision of PFTUP regulation is settled and it disposed of the adjudication proceedings pending in respect of Chaturvedis.

Laxmi M Chaturvedi had proposed to settle the case on payment of over Rs 17.87 lakh as settlement charges under Sebi’s consent order mechanism, while Manoharlal had proposed Rs 2 lakh for the same.

Under the consent order mechanism, entities or individuals can seek to settle cases with the regulator after payment of certain fee and other expenses without admission of guilt.

Thereafter, Sebi’s High Powered Advisory Committee (HPAC) considers and recommends whether the case can be settled on the payment of the proposed amount.

HPAC recommendations then have to be accepted by the panel of whole time members of Sebi.

As per the Sebi consent order, the regulator can take enforcement action, including reopening of the pending proceedings against Chaturvedis, if any representation made by the company is found to be untrue.

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