New Delhi: The Securities and Exchange Board of India (SEBI) has taken strict action against 15 entities for their involvement in non-genuine trades in the illiquid stock options segment on the Bombay Stock Exchange (BSE). In separate orders, SEBI imposed fines totaling Rs 75 lakh on these entities for indulging in artificial trades, leading to the creation of artificial volumes on the bourse.
SEBI conducted a thorough investigation into the trading activities of certain entities engaged in the segment on BSE between April 2014 and September 2015 and observed a large-scale reversal of trades in the illiquid stock options segment.
According to SEBI, these 15 entities were found guilty of executing reversal trades, which are alleged to be non-genuine in nature as they are executed in the normal course of trading. This leads to a false or misleading appearance of trading, generating artificial volumes, which is prohibited by the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) provisions.
Vanshika Gurbani, UNNO Industries, Vaishali Tushar Shah, Varshaben ManojKumar Jadav, Surendra Kumar Bagri HUF, Ketan Desai, Kiran Bhawani, Kiran Gupta, Kiran Rasiklal Mehta, Ask Realty and Developers, Sunita Agarwal, Suresh Maheshwari, Usha Maurya, Union Commodities, and Sunrise Legal Advisor and Consultant were among the entities fined by SEBI.
Each of the entities was levied with a fine of Rs 5 lakh for their involvement in the execution of reversal trades. SEBI has taken strict action against the entities for violating the provisions of PFUTP, which aims to prevent any fraudulent and unfair trading practices.
The move by SEBI is aimed at deterring entities from indulging in non-genuine trades in the future, especially in the illiquid stock options segment on BSE. The regulator has been taking strict action against entities indulging in any fraudulent and unfair trade practices to maintain the integrity of the capital markets and to protect the interests of investors.
SEBI’s action serves as a reminder that any market manipulation or fraudulent trading practices will not be tolerated, and entities found guilty will be punished severely. The regulator’s efforts to maintain transparency and fair play in the capital markets will go a long way in boosting investor confidence and ensuring the growth of the Indian economy.
