SEBI slaps Rs 15 lakh penalties on three entities for non-genuine trades

Published on : 10:13 AM Mar 24, 2022

Markets regulator SEBI imposed penalties totalling Rs 15 lakh on three entities for indulging in non-genuine trades in the illiquid stock options segment on BSE. In separate orders, the regulator levied a fine of Rs 5 lakh each.

New Delhi: Markets regulator SEBI on Wednesday imposed penalties totalling Rs 15 lakh on three entities for indulging in non-genuine trades in the illiquid stock options segment on BSE. In separate orders, the regulator levied a fine of Rs 5 lakh each on Gouri Sankar Agarwal HUF, Sukriti Sinha and Sanjana Jain.

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The orders came after Sebi observed large scale reversal trades in the stock options segment on BSE, leading to the creation of artificial volumes in the segment. In view of the same, the Securities and Exchange Board of India (Sebi) conducted an investigation into the trading activity in illiquid stock options on BSE from April 2014 to September 2015.

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They were found to have indulged in reversal trades which was in violation of Sebi norms. 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.

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PTI

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