Mumbai: Sebi on Monday barred fugitive businessman Mehul Choksi from the securities markets for 10 years and imposed a fine of Rs. 5 crore on him for indulging in fraudulent trading in the shares of Gitanjali Gems Ltd.

He has been directed to pay the penalty within 45 days, according to the Securities and Exchange Board of India (Sebi) order.

Choksi, who was the chairman and managing director as well as part of the promoter group of Gitanjali Gems, is the maternal uncle of Nirav Modi. Both are facing charges of defrauding state-owned Punjab National Bank (PNB) of more than Rs 14,000 crore.

Both Choksi and Modi fled India after the PNB scam came to light in early 2018. While Choksi is said to be in Antigua and Barbuda, Modi is lodged in a British jail and has challenged India’s extradition request.

The present proceedings emanate from a common show cause notice issued by Sebi in May 2022 against Choksi, pursuant to an investigation by the regulator into the alleged manipulative trading in the scrip of Gitanjali Gems.