Published by: Business desk
Last updated: Sep 13, 2023 4:52 PM IST
In seven separate orders on Monday, the regulator imposed a fine of Rs 5 lakh each
Sebi had observed large-scale reversal trades in the illiquid equity options segment on the BSE, leading to artificial volumes on the exchange.
Capital market regulator Sebi has imposed fines totaling Rs 35 lakh on seven entities for indulging in spurious trades in the illiquid stock options segment on the BSE.
In seven separate orders, the regulator on Monday imposed a fine of Rs 5 lakh each on Subhash Kumar Poddar HUF, Manoj Kumar Goenka HUF, Ayan Akhter Husain, Ankita Didwania, Rakesh Golechha, Ankur Taneja HUF and Yogesh Kumar Gupta HUF.
Sebi had observed large-scale reversal trades in the illiquid equity options segment on the BSE, leading to artificial volumes on the exchange.
Furthermore, from April 2014 to September 2015, the regulator conducted an investigation into the trading activities of certain entities operating in the segment.
The seven entities fined on Monday were among those who indulged in carrying out reverse bookings.
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.
The entities violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) standards.
In another order, Sebi on Monday canceled the registration of brokerage firm Rudra Comventures, formerly known as Gigantic Commodities, for facilitating its clients to trade in illegal paired contracts on the now defunct National Spot Exchange Ltd.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)
