New Delhi:
Capital markets regulator Sebi on Tuesday imposed fines totaling Rs 25 lakh on five entities for indulging in non-genuine transactions in the illiquid stock option segment on BSE.
The regulator imposed a fine of Rs 5 lakh each on Chitrabai Vasantrao Nikam, Damayanti Jhunjhunwala, Nemichand Kasturchand Jain, Naresh Kumar Agarwal and Chandra Lakshmi Safety Glass Ltd (CLSG).
Sebi had observed large-scale reversals in the illiquid stock option segment on BSE, leading to artificial volumes on the exchange. The regulator conducted an investigation into the trading activities of certain entities operating in the segment from April 2014 to September 2015.
The five entities fined on Tuesday were among those who indulged in carrying out reversals.
Reversal transactions would be fake in nature as they are executed in the ordinary course of trade, leading to a false or misleading appearance of trading in terms of generating artificial volumes, the regulator said.
By indulging in these acts, the entities violated PFUTP standards (Prohibition of Fraudulent and Unfair Business Practices).
In a separate order, the regulator banned Uday Intellicall Pvt Ltd and its directors from the securities market for six months for providing unauthorized investment advisory services.
They have also been asked to repay the ‘joint and several’ money collected from investors through such services within three months.
Rajat Sarraf and Kalpana Jain were the directors of Uday Intellicall.
According to Sebi, Uday Intellicall engaged in investment advisory services without holding the mandatory registration certificate from the market watchdog.
The regulator also noted that Sarraf and Jain, who are the company’s directors and shareholders, were also the beneficiaries of the unregistered investment advisory services offered on behalf of the company, thereby violating the provisions of the Investment Advisors Rules (IA ) violated.
Uday Intellicall had received Rs 1.06 crore in their accounts from March 2018 till date through unregistered investment advisory services, Sebi said.
(Except for the headline, this story has not been edited by DailyExpertNews staff and is being published from a syndicated feed.)