Sebi Penalty: The orders came after Sebi observed large-scale reversals in the illiquid stock options segment on BSE, leading to artificial volumes on the exchange. (Representative Image)
Sebi fine: The nine entities fined on Tuesday were among those who indulged in carrying out reversal transactions.
Capital markets regulator Sebi on Tuesday imposed fines totaling Rs 45 lakh on nine entities for indulging in non-genuine transactions in the illiquid stock option segment on BSE.
Sebi punishment
In nine separate orders, the regulator has fined Rs 5 lakh each against Vivek Company, Soundlight Projects, SR Realbuild, Srijan Dealers, Manomay Dealmark, Zodiac Vanijya, VKJ Trexim, Hans Homes and Guruteg Bahadur Rice Mill.
The orders came after Sebi observed large-scale reversals in the illiquid stock options segment on BSE, leading to artificial volumes on the exchange.
It then conducted an investigation into the trading activities of certain entities operating in the segment between April 2014 and September 2015.
The nine entities fined on Tuesday were among those who indulged in conducting reversal transactions.
Reversal trades are said to be inauthentic in nature as they are executed in the normal course of trading, leading to a false or misleading appearance of trading in terms of generating artificial volumes, the regulator said.
These actions have caused the entities to violate Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) standards.
In a separate order on Monday, the regulator removed the show-cause notices issued against 10 individuals, arguing that the allegation of insider trading violations had not been established against Titan Company Ltd (TCL).
The injunction came after the Securities Appellate Tribunal (SAT) in its July 12 ruling overturned Sebi’s orders against 10 individuals for violating insider trading standards in TCL’s stock and ordered the capital markets watchdog to issue a new injunction. to issue.
(This story has not been edited by News18 staff and was published via a syndicated news agency feed – PTI)
