Capital markets regulator SEBI on Friday imposed a fine 35 lakh on seven entities on non-realistic trades in illiquid stock options on BSE.
Regulator imposed fine in seven different orders 5 lakh each to Vinita Agarwal, Arjun Sahu HUF, Banwari Lal Arora HUF, Pranita Kayan, Daisy Jain, Manish Kumar Soni and Vineet Kumar Agarwal.
The order came after SEBI observed massive reversal trades in the stock options segment on BSE, thereby creating artificial trading volume in the segment.
The Securities and Exchange Board of India (SEBI) examined trading activity in illiquid stock options on BSE after a massive reversal of trades in the stock options segment for the period April 2014 to September 2015.
SEBI said that reversal trades are considered to be non-genuine in nature as they are executed in the normal course of business, giving false or misleading appearance of the trade in terms of generating artificial volumes.
By indulging in such trades in stock options, they violated the provisions of the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Rules, it added.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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