Three individuals buy IPO shares with sham identities; face Sebi fine

Three individuals, multiple sham identities and purchase of shares in 27 initial public offers (IPOs) during 2004-2011.

Now, after repeated defaults on their obligations, the three individuals have been fined Rs 9.23 lakh by markets regulator Sebi.

Penalty has been imposed on the noticees -- Babulal Dugar, Manoj Dugar and Vinod Dugar.

The watchdog conducted an investigation between 2002 to 2012, following allegations that the three persons used multiple identities or sham identities to corner shares in IPOs.

Shares were allotted in the name of these sham identities in various IPOs and those were subsequently transferred to these persons and their relatives.

In a 22-page order, the watchdog said the noticees by creating sham identities and cornering shares in IPOs at the cost of genuine investors have indulged in fraudulent and unfair trade practices.

The noticees made unlawful gains of Rs 3,07,607.30 and the act of creating sham identities to corner shares in the IPOs at the cost of ..