Mumbai: Market regulator Sebi imposed a penalty of 10 lakh on a brokerage firm Jitendra Harjivandas Securities for allegedly facilitating fraudulent trading practices in shares of Betala Global Securities(BGSL).

Securities and Exchange Board of India (Sebi) said the stock broker indulged in circular/reversal synchronised trades with other brokers and clients in the shares of Betala Global Securities.

"...impose a total penalty of 10 lakh on the noticee (Jitendra Harjivandas Securities)...the penalty is commensurate with the default committed by the noticee," Sebi said in its order.

In a probe conducted by Sebi, the regulator found a spurt in the share price of BGSL during May 2-November 21, 2003. The regulator said that the company's scrip price jumped by 254 percent and a total of 1.54 crore shares were traded.

Sebi said a group of clients connected to each other i.e., Mahesh Mistry traded in the shares of the BGSL through various trading members and mostly through Jitendra Harjivandas Securities.

"...the noticee as a stock broker have indulged in manipulative and fraudulent transactions and created a false market of shares of the company by acting in concert with the entities of Mahesh Mistry Group," the regulator said.

It further said the stock broker has failed to show high standards of integrity, promptitude and fairness as well as failed to act with due skill, care and diligence in the conduct of the business.