Markets regulator Sebi Thursday imposed a total penalty of Rs 30 lakh on six entities for indulging in non-genuine transactions leading to creation of artificial trading volume in illiquid stock options segment of BSE.
The regulator has levied a fine of Rs 5 lakh each on six entities -- Pressweld Vessels, Prarambh Securities, Jai Ambey Metal Works, Jagdish Kumar Lalwani, Klapp Vyapaar and Kamaldhan Vyapaar.
It was alleged that the entities were involved in reversal trades which created false and misleading appearance of trading, generating artificial volumes in the stock options segment.
The orders came after the regulator announced adjudication proceedings against 567 entities involved in such trades in the first phase.
The Securities and Exchange Board of India (Sebi) conducted an investigation into the trading activity in illiquid stock options on BSE between April 2014 to September 2015 after observing large scale reversal of trades in the stock options segment.
In similar worded orders passed on Thursday, Sebi observed that "noticee (the five entities) had indulged in execution of reversal of trades in with same entities on the same day."
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