The Securities and Exchange Board of India ( Sebi ) imposed a total penalty of Rs 20 lakh on four entities on Thursday for engaging in non-genuine trades in the illiquid stock options segment on the BSE .
Sebi fined Preview Vinimay Pvt Ltd, Paramjyoti Tradelinks, Siddharth Kalani, and Anil Kumar Banka Rs 5 lakh each, after observing reversal trades in stock options on the Bombay Stock Exchange, which led to the creation of artificial volumes.
After noticing this, Sebi launched an investigation into the trading activities of certain entities in the illiquid stock options segment on the BSE, covering the period from April 2014 to September 2015.
These entities were found to have participated in reversal trades, Sebi stated.
The regulator said that such trades are manipulative and deceptive. As a result, Sebi started adjudication proceedings against them for violating provisions of Regulations 3(a), (b), (c), (d), 4(1), and 4(2)(a) of Sebi’s Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations, 2003.
Sebi confirmed that these four entities engaged in reversal trades with their counterparties in the stock options segment, deeming the trades non-genuine and a violation of PFUTP regulations.
Earlier in the week, Sebi had also fined Amit Kumar Choudhary HUF, Krishna Swarup Shukla, and Jeevan Kumar Agarwal Rs 5 lakh each in three separate orders for their involvement in non-genuine trades in the illiquid stock options segment on the BSE.
Sebi fined Preview Vinimay Pvt Ltd, Paramjyoti Tradelinks, Siddharth Kalani, and Anil Kumar Banka Rs 5 lakh each, after observing reversal trades in stock options on the Bombay Stock Exchange, which led to the creation of artificial volumes.
After noticing this, Sebi launched an investigation into the trading activities of certain entities in the illiquid stock options segment on the BSE, covering the period from April 2014 to September 2015.
These entities were found to have participated in reversal trades, Sebi stated.
The regulator said that such trades are manipulative and deceptive. As a result, Sebi started adjudication proceedings against them for violating provisions of Regulations 3(a), (b), (c), (d), 4(1), and 4(2)(a) of Sebi’s Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations, 2003.
Sebi confirmed that these four entities engaged in reversal trades with their counterparties in the stock options segment, deeming the trades non-genuine and a violation of PFUTP regulations.
Earlier in the week, Sebi had also fined Amit Kumar Choudhary HUF, Krishna Swarup Shukla, and Jeevan Kumar Agarwal Rs 5 lakh each in three separate orders for their involvement in non-genuine trades in the illiquid stock options segment on the BSE.
You may also like
Army's Sudarshan Chakra Corps conducts `Swavlamban Shakti' exercise
Alison Steadman has coped with secret sadness while filming the Gavin and Stacey Christmas special
Liam Payne and Cheryl Cole's touching wish for son Bear's childhood they strongly agreed on
MoS Margherita to represent India at Indonesian President's inauguration ceremony
SC dismisses PIL seeking content monitoring on OTT and digital media platforms
