New Delhi, Apr 4 (PTI) Capital markets regulator Sebi on Monday imposed penalties totalling Rs 15 lakh on three entities for indulging in non-genuine trades in illiquid stock options on BSE.

In three separate orders, the regulator slapped a fine of Rs 5 lakh each on Vinit Jagdishprasad Kedia, Shiv Kumar Sarda HUF and Bajrang Lal Dalmia HUF.

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The orders came after Sebi observed large scale reversal trades in the stock options segment on BSE, leading to the creation of artificial volumes.

The Securities and Exchange Board of India (Sebi) conducted an investigation into the trading activity in illiquid stock options from April 2014 to September 2015 after observing large scale trades in the stock options segment on BSE.

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By indulging in such trades in stock options, they violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)