Latest News | Sebi Levies Rs 35 Lakh Fine on 7 Entities for Non-genuine Trades

New Delhi, May 9 (PTI) Capital markets regulator Sebi on Tuesday levied fines totalling Rs 35 lakh on seven entities for indulging in non-genuine trades in the illiquid stock options segment on BSE.

In seven separate orders, the regulator slapped a fine of Rs 5 lakh each on Pawan Kumar Sarawagi HUF, Subh Laxmi Trading Co, STIC Tradecomm, Starlight Devcon, Devesh Commosale, Devinder Kumar and Kishorechandra Gulabbhai Desai.

Also Read | Go First Airline Says Will Respond to DGCA Notice in Due Course.

The Securities and Exchange Board of India (Sebi) observed large-scale reversal of trades in the illiquid stock options segment of BSE, leading to the creation of artificial volumes on the bourse.

It conducted an investigation into the trading activities of certain entities engaged in the segment on BSE from April 2014 to September 2015.

Also Read | Karnataka Assembly Elections 2023: Voter ID Card Lost? Here's a List of Alternative Documents You Can Use to Cast Your Vote.

According to Sebi, these seven 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, the markets watchdog said.

The entities had flouted the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices).

(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)