Sebi slaps ₹15 lakh penalties on three entities for non-genuine trades
Premium- In separate orders, the Sebi levied a fine of ₹5 lakh each on Gouri Sankar Agarwal HUF, Sukriti Sinha and Sanjana Jain.
Markets regulator Sebi on Wednesday imposed penalties totalling ₹15 lakh on three entities for indulging in non-genuine trades in the illiquid stock options segment on BSE.
In separate orders, the regulator levied a fine of ₹5 lakh each on Gouri Sankar Agarwal HUF, Sukriti Sinha and Sanjana Jain.
The orders came after Sebi observed large scale reversal trades in the stock options segment on BSE, leading to creation of artificial volumes in the segment.
Securities and Exchange Board of India (SEBI) conducted an investigation into the trading activity in illiquid stock options on BSE for the period April 2014 to September 2015 after observing large scale reversal of trades in the stock options segment of the BSE.
The investigation revealed that out of the total trades executed during the investigation period on the BSE stock options segment, around 81% were reversal / non-genuine.
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Reversal trades are alleged to be non-genuine in nature as they are executed in the normal course of trading, which leads to a false or misleading appearance of trading in terms of generating artificial volumes.
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