Mumbai: Market regulator Sebi imposed a total penalty of Rs 1.2 crore on three entities for alleged violations in trading norms related to shares of Axon Infotech Ltd.

Two individuals -- Sheetal Kadam and Dhirendra Rajitram Shukla -- as well as Kushal Software  Ltd have been slapped with a fine of Rs 40 lakh each.

In three similarly-worded separate orders, Sebi said the penalties have been imposed for violating norms on fraudulent trading practices, with regard to trading of Axon Infotech shares.

Sebi in its order against Sheetal Kadam said it was imposing "a penalty of Rs 40 lakhs on Sheetal Kadam... The said penalty is commensurate with the violations made by Sheetal Kadam".
Axon Infotech was earlier known as Aesthetic Investments. Kushal Software is presently known as Octant Interactive Technologies Ltd.

Pursuant to the amalgamation scheme of Kushal with Axon, BSE had suo moto initiated investigation into the shares of Axon for suspected violation of price manipulation, insider trading, takeover code and technical violations for the period from March 17, 2006 to September 19, 2006.

Following the BSE report on the issue, Sebi initiated a probe in the scrip of Axon for suspected violations of price manipulation, insider trading, takeover code and technical violations.

The market regulator found that the three entities had manipulated the price of Axon which distorted market equilibrium of the scrip. According to the orders, the investigation report has not quantified the profit/loss for the nature of violations/ transactions carried out by the noticees.

Also, no quantifiable figures are available on record to assess the disproportionate gain or unfair advantage, amount of loss caused to an investor or group of investors as a result of the fraudulent practices and non-genuine transactions, they added.


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