Indian regulator fines 17 entities for securities fraud

MUMBAI, Jan 23 (AsiaPulse) - Indian regulator Sebi has imposed penalty totalling Rs 24 lakh (US$47,788) on 17 entities on charges ranging from non-disclosure of acquisition of shares to involvement in fraudulent trade practices in dealing with shares of Platinum Corporation Ltd (BSE:532117). In separate orders, Sebi fined Platinum Corporation Promoter and Director Pratik Shah and 14 others Rs 20 lakh jointly for non-disclosure of acquisition of shares of the company.

It also levied penalty of Rs two lakh each on Shankarlal M Patel and Lakshya Securities and Credit Holdings Ltd for unfair trade practices.

The Securities and Exchange Board of India had earlier conducted investigations relating to trading in the shares of Platinum Corporation.

This had revealed that the company had issued 2.

90 crore shares through preferential allotment of Re one each at a premium of Rs 0.25 per share to seven persons, all related to the company, including Shah in January 2009.

The regulator had issued show cause notices to all of them, along with some other entities, for violation of guidelines on disclosure of acquisition of shares. While some of the noticees replied to the show cause notices, Shah and three others did not, Sebi said.

After going through the replies and o