Capital markets regulator Sebi on Tuesday imposed penalties totalling Rs 15 lakh on three individuals for indulging in non-genuine trades in the illiquid stock options segment on BSE.
In three separate orders, the watchdog slapped a fine of Rs 5 lakh each on Radha Devi Goenka, Radhey Shyam Manchanda and Sanchit Arora.
Sebi had observed large scale reversal of trades in the illiquid stock options segment of BSE, leading to creation of artificial volumes on the bourse.
It had conducted an investigation into the trading activities of certain entities engaged in the segment on BSE from April 2014 to September 2015.
According to Sebi, the three individuals were among those who indulged in the execution of reversal trades.
The 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, Sebi said.
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The individuals had violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices).
