Capital markets regulator Sebi on Wednesday imposed a penalty of Rs 5 lakh on an entity for non-genuine trades in the illiquid stock options on BSE.
The fine has been imposed on Rajendra Kumar Bubna HUF.
The order came after Sebi observed large scale reversal trades in the illiquid stock options segment on BSE, leading to the creation of artificial trade volume.
By indulging in such trades, the entity flouted the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations. Sebi conducted a probe into the trading activity in illiquid stock options on BSE for the period April 2014 to September 2015 after observing large scale reversal trades in the segment. PTI HG RAM
