Market regulator SEBI on Tuesday banned Arvind Johari, owner of Lucknow-based Cyberspace, from trading for 10 years for his involvement in the securities scam in 1999-2001.
In addition to Johari, 39 other entities have also been banned from trading for five years for creating false market for Cyberspace shares through artificial trade.
"Arvind Johari be restrained from accessing the securities market and prohibited from associating with securities market to buy, sell or deal in securities in any manner for a period of 10 years," SEBI said in its order.
The period of debarment against Johari, following the interim order on April 6, 2001, will be set off, SEBI said.
The 39 others, who have been banned for five years, include G N Johari, Anand K Johari, A M Johari and Co and Kamal Infosys.
SEBI order said, "Arvind Johari, director of Cyberspace has used undue influence on many of the noticees to yield his manipulative design since. Since he was the key player in the game plan, he should be penalised sternly as compared to the penalties to be imposed on other noticees."
During the investigation, the market regulator found unusual movement in the scrip of Cyberspace, mostly engineered by same set of people through trading in a circular manner.
The share price of Cyberspace fell from Rs 1,200 per in September 2000 to 147 in February 2001. Trading in the scrips of the company was suspended at BSE and NSE in April, 2001.