"After considering all the facts and circumstances of the case... hereby impose a monetary penalty of Rs 10 lakh under Section 15 HA of the SEBI Act on the Noticee (Saumil A Bhavnagari)," the Securities and Exchange Board of India said in an order.

The section deals with penalty for fraudulent and unfair trade practices.

Sebi had earlier conducted investigation regarding the buying, selling and dealing in the shares of Adani Exports Ltd (AEL) between July 9, 2004 and January 14, 2005 and again between August 1, 2005 to September 5, 2005.

The price of the scrip of AEL witnessed wide fluctuations during the two periods.

The role of the main brokers and clients who had traded heavily during the period under investigation in the scrip of AEL was scrutinised.

The investigations had revealed that certain entities transacted in the shares of the company in a fraudulent manner that led to creation of artificial volume and price rise in the scrip.

Bhavnagari and his V&S Intermediaries was one such intermediary.

Sebi had in June 2008 issued a show cause notice to Bhavnagari to which a reply was sent.

After considering all the facts, the regulator said that that the trades made by Bhavnagari were fictitious.