SEBI imposes Rs.55 lakh penalty on 11 entities for indulging in non-genuine trade
They violated the Prohibition of Fraudulent and Unfair Trade Practices norms
SEBI imposes Rs.55 lakh penalty on 11 entities for indulging in non-genuine trade
They violated the Prohibition of Fraudulent and Unfair Trade Practices norms
The Securities and Exchange Board of India (SEBI) has imposed penalties on 11 entities for indulging in non-genuine trade in the illiquid stock options segment on the Bombay Stock Exchange (BSE).
Totalling Rs.55 lakh, in 11 separate orders, the regulator levied a fine of Rs.5 lakh each on Shilpa Chhabra, Shreya Kumari, Sharad Shivnarayan Kasat, Shri Krishan Goyal HUF, Shailesh Singh Prem Singh Negi, Shashank Tekriwal, Sheetal Gupta, Shri Ram Commodities, Raisoni Securities, Welkin Investment Consultants, and Shankar Barter Pvt Ltd.
The order came after SEBI observed a large-scale reversal trade in the illiquid stock options segment on BSE. It had led to artificial volumes on the exchange.
Subsequently, the markets regulator conducted an investigation into the trading activities of certain entities engaged from April 2014 to September 2015.
The 11 entities were among those who indulged in the execution of reversal trades.
(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).