New Delhi, Mar 21 (PTI) Capital markets regulator Sebi on Monday imposed penalties totalling Rs 15 lakh on three entities for indulging in non-genuine trades in illiquid stock options on BSE.
In three separate orders, the regulator levied a fine of Rs 5 lakh each on Sanjay Bansal, Abhishek Sheth HUF and Abhishek Mall.
The orders came after Sebi observed large scale reversal trades in the stock options segment of BSE, leading to the creation of artificial volumes.
In view of the same, the Securities and Exchange Board of India (Sebi) had conducted an investigation into the trading activities of certain entities engaged in illiquid stock options on BSE from April 2014 to September 2015.
Pursuant to the investigation, it was observed that over 2.91 lakh trades comprising a substantial 81.41 per cent of all the trades were executed in the stock options segment of BSE. It noted that these entities were among the various others that indulged in the execution of reversal trades in the stock options segment.
The reversal trades are alleged to be non-genuine in nature as they are executed in the normal course of trading, which leads to a false or misleading appearance of trading in terms of generating artificial volumes, Sebi said.
By indulging in such trades in stock options, they flouted the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms, it added. PTI HG SP HG RUJ RUJ
