Illiquid stock options case: SEBI imposes ₹25 lakh fine on 5 entities
PremiumSEBI found that these entities were among various others that indulged in the execution of reversal trades in the stock options segment
Capital markets regulator SEBI today imposed a ₹25 lakh fine on 5 entities for indulging in “non-genuine trades" in stock options on the Bombay Stock Exchange (BSE). Issuing five separate orders, SEBI slapped ₹5 lakh fine each on Dhanwantri Suppliers Pvt Ltd, Dayanidhi Mercantile Pvt Ltd, Sanjay Agarwal HUF, Radhika Sarraf and Ankit Garg HUF.
SEBI said it had ordered an investigation into a case pertaining to “large scale reversal trades" observed in the stock options segment of BSE. These reversal trades had created artificial volume in the segment.
The probe into the trading activity was conducted from April 2014 to September 2015.
Following the probe, SEBI found that these entities were among various others that indulged in the execution of reversal trades in the stock options segment.
The reversal trades are alleged to be non-genuine in nature as they are executed in the 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.
With PTI inputs
Never miss a story! Stay connected and informed with Mint. Download our App Now!!