Sebi charges a fine of 15 lakh Rs for 3 units for non-genuine trades – newsdubai

Capital market regulator Sebi on Wednesday imposed fines of Rs 15 lakh on three entities for non-genuine trading in illiquid stock options on BSE.

In three separate orders, the Authority imposed a fine of Rs 5 lakh each on Gopal Prasad Poddar HUF, Govind Poddar HUF and Govind Kumar Shah HUF. The orders came after Sebi observed large-scale reversal trading in the illiquid stock option segment on BSE, leading to the creation of artificial trading volumes.

By engaging in such stock options trading, they violated the provisions of the PFUTP (Prohibition of Fraudulent and Trade Practices). The Securities and Exchange Board of India (Sebi) conducted an investigation of the trading activity of illiquid stock options on BSE for the period April 2014 to September 2015 after observing large trades in the stock option segment on BSE.