Bangalore: Sebi said it has disposed of show-cause notices against two individuals saying their trades in the shares of Temptation Foods were not synchronised. The case is related to alleged unfair trade practices by -- Prakash Shah, chartered accountant and Kapil Thacker, director of Lalkar Securities --  in the shares Temptation Foods.

Sebi (Securities and Exchange Board of India) said it did not find that "the noticee (Prakash Shah, chartered accountant and Kapil Thacker, director of Lalkar Securities) has failed to exercise due care and diligence."

Consequently, Sebi said the show cause notice is accordingly disposed of against the Shah and Thacker. However, the regulator said the noticee, "being a stock broker and supposedly having professional competence, should take utmost care and be more vigilant while executing such trades on behalf of its clients in future." It was alleged that the two entities in collusion with the stock broker had created artificial volumes through synchronized deals in the scrips of three firms - Bang, Confidence and Temptation.

Sebi said it has already given a benefit of doubt to the noticee in respect of its alleged dealings on behalf of its clients in the scrip of Bang and Confidence in an earlier order in April this year. However, the regulator said it found that the noticee while trading on behalf of its clients in the scrip of Temptations has failed to exercise due care, skill and diligence. A show cause notice dated June 11, 2012 was issued against these entities.

In the scrip of 'Temptation', Sebi said, "noticee has not done propriety trades and there is no evidence on record to suggest any relation between the connected entities and the noticee apart from client-broker relationship." "...give benefit of doubt to the noticee in relation to the allegations that the noticee was indulged in and had assisted or abetted  its clients who created artificial volumes to give false appearance of trading in the scrips (Temptation) through their non-genuine trades," it added.