Capital markets regulator Sebi on Thursday imposed a penalty totalling Rs 45 lakh on nine entities, including individuals, for indulging in non-genuine trades in illiquid stock options at BSE.
In nine separate orders, the regulator has levied a fine of Rs 5 lakh each on Armour Commotrade, Seema Aggarwal, Seema Bagree, Seema Choraria, Kala Patodia, Mandeep Kaur, Kalpana Aggarwal, Ankit Modi and Sarita Gupta.
The Securities and Exchange Board of India (Sebi) observed a large-scale reversal of trades in the stock options segment of BSE. It noted that such a large-scale reversal of trades in stock options led to the creation of artificial volume at BSE.
In view of the same, the regulator conducted an investigation into the trading activities of certain entities in illiquid stock options at BSE for the period April 2014 to September 2015.
Pursuant to the investigation, it was observed that over 2.91 lakh trades comprising a substantial 81.38 per cent of all the trades executed in the stock options segment of BSE during the investigation period were non-genuine.
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