After observing large scale reversal of trades in stock options segment of the bourse, the Securities and Exchange Board of India conducted an investigation between April 2014 and September 2015.
Markets regulator SEBI on May 23 levied a total fine of over Rs 39 lakh on five entities for indulging in fraudulent trades in the illiquid stock options segment of BSE.
Among the five entities, Straight Line Food Products and Winsher Commercial were fined Rs 5 lakh each, Shri Radha Raman Alloys and Vindus Holdings were levied a penalty of Rs 9 lakh each while Rs 11.20 lakh was imposed on Subhlabh Fiscal Services, totalling Rs 39.20 lakh.
After observing large scale reversal of trades in stock options segment of the bourse, the Securities and Exchange Board of India (SEBI) conducted an investigation between April 2014 and September 2015.
The probe found that the five were among the various entities that executed non-genuine trades in the stock options segment by reversing trades with same entities on the same day with wide variation of price.
The reversal trades executed by the entities were non-genuine and thereby created an impression of artificial trading volumes, SEBI said.
"The non-genuine and deceptive transactions of these entities are, prima-facie, covered under the definition of fraud" and are prohibited under PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations, thereby making them liable for monetary penalty," SEBI noted.
In a separate order, SEBI imposed a fine of Rs 10 lakh on seven promoters of Brand Realty Services for delay in making open offer to acquire shares in the company.
The delay in making open offer by the promoter group was violative of SAST (Substantial Acquisition of Shares and Takeovers) norms, SEBI said.Get Lok Sabha 2019 Live Election Results, constituency-wise tally, news, views and analysis
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