Sebi slaps ₹25 lakh fine on 5 entities for non-genuine trades
1 min read . Updated: 13 Apr 2023, 09:57 AM IST
Premium- The investigation revealed that these entities had engaged in the widespread reversal of trades, resulting in the artificial inflation of trading volumes on the exchange.
The Securities and Exchange Board of India (SEBI) levied penalties amounting to ₹25 lakh on five entities for engaging in fraudulent transactions in the illiquid stock options segment on the Bombay Stock Exchange (BSE).
As per media reports, in five separate orders, the watchdog levied a fine of ₹5 lakh each on Natraj Dealtrade, Queen Tie-Up Pvt Ltd, Octagon Merchants, Noble Tradelink and Nirmal Kumar Chopra HUF.
Sebi conducted an investigation into the trading activities of specific entities involved in the illiquid stock options segment of BSE during the period from April 2014 to September 2015.
The investigation revealed that these entities had engaged in the widespread reversal of trades, resulting in the artificial inflation of trading volumes on the exchange.
According to Sebi, the five entities 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.
The entities had violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices).
(With inputs from PTI)