In the illiquid stock option segment on the BSE for indulging in non-genuine trades, SEBI has imposed fines totaling Rs 35 lakh on seven entities.
In seven different orders on Monday, the regulator slapped a fine of Rs 5 lakh each on Subhash Kumar Poddar HUF, Manoj Kumar Goenka HUF, Ayan Akhter Husain, Ankita Didwania, Rakesh Golechha, Ankur Taneja HUF and Yogesh Kumar Gupta HUF.
Large-scale reverse trades on the BSE’s sluggish stock options market had observed by Sebi, creating fictitious volumes on the exchange.
Further, the regulator conducted an investigation into the trading activities of certain entities engaged in the segment from April 2014 to September 2015.
Among those who executed reversal trades were the seven organizations punished on Monday.
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, the regulator said.
By indulging in such trades, the entities violated the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.
Sebi cancelled the registration of brokerage firm Rudra Comventures, formerly known as Gigantic Commodities, for facilitating its clients to trade in illegal paired contracts on the now defunct National Spot Exchange Ltd. In another order on Monday.
