Capital markets regulator SEBI on Friday imposed a total penalty of Rs 75 lakh on 15 entities for indulging in non-genuine trades in the illiquid stock options segment on BSE.
In fifteen separate orders, the regulator levied a fine of Rs 5 lakh each on Vanshika Gurbani, UNNO Industries, Vaishali Tushar Shah, Varshaben ManojKumar Jadav, Surendra Kumar Bagri HUF, Ketan Desai, Kiran Bhawani and Kiran Gupta.
Kiran Rasiklal Mehta, Ask Realty & Developers, Sunita Agarwal, Suresh Maheshwari, Usha Maurya, Union Commodities and Sunrise Legal Advisor & Consultant were also penalized by the market watchdog.
The Securities and Exchange Board of India (SEBI) had observed massive reversal of trades in the illiquid stock options segment of BSE, leading to creation of artificial volumes on the exchange.
It examined the trading activities of certain entities engaged in BSE segments from April 2014 to September 2015. According to SEBI, these 15 entities were among those involved in the execution of reversal trades.
Sebi said reversal trades are alleged to be non-genuine in nature as they are executed in the normal course of business, which leads to false or misleading appearance of trade in terms of generating artificial volumes. The entities had violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices).
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