New Delhi: Capital markets regulator Sebi on Friday imposed a total fine of Rs 25 lakh on five entities for indulging in non-genuine trades in stock options on BSE. In five separate orders, the regulator slapped a fine of Rs 5 lakh each on Dhanwantri Suppliers Pvt Ltd, Dayanidhi Mercantile Pvt Ltd, Sanjay Agarwal HUF, Radhika Sarraf and Ankit Garg HUF.
The orders came after Sebi observed large scale reversal trades in the stock options segment of BSE, leading to the creation of artificial volume in the segment.
In view of the same, the Securities and Exchange Board of India (Sebi) had conducted an investigation into the trading activity from April 2014 to September 2015.
Pursuant to the investigation, it was observed that these entities were among various others which indulged in execution of reversal trades in stock options segment.
The reversal trades are alleged to be non-genuine in nature as they are executed in normal course of trading, which leads to false or misleading appearance or trading in terms of generating artificial volumes, Sebi said.
By indulging in such trades in stock options, they violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms, it added. PTI HG SP HG ABM ABM
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