Don’t miss the latest developments in business and finance.

Sebi slaps Rs 28 lakh fine on individual for fraud trade

Image
Press Trust of India New Delhi
Last Updated : Feb 07 2018 | 6:20 PM IST
Markets regulator Sebi has imposed a penalty of Rs 28 lakh on one Suresh Swaroopchand Mehta for indulging in 'self-trades' in the shares of Indian Overseas Bank (IOB), which created false and misleading appearance of trade in the scrip.
Self-trades, in market parlance, refers to a transaction in which the same entity takes both sides of the trade resulting into no change in beneficial ownership.
A probe conducted by Sebi found that Mehta indulged in 'self-trades' during the last half-an-hour in the cash market at NSE in the state-run lender's scrip without intention of change of beneficial ownership but intended to operate in order to make profits in the derivative segment on the expiry date of future and option (F&O) contracts on December 26, 2013.
Further, the regulator said that Mehta had also indulged in order book manipulation by repeatedly placing and deleting orders by creating false and misleading appearance of trading in the scrip of IOB on November 28, 2013 and December 26, 2013.
"The net profit earned by the noticee (Mehta) on December 26, 2013, in the derivatives segments was Rs 9.31 lakh as submitted by him after considering loss in cash segment, the brokerage expenses and statutory transaction taxes," the order noted.
By indulging in such activities, he had violated the provisions of Sebi's PFTUP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, the regulator said in an order dated February 6.
Accordingly, Securities and Exchange Board of India (Sebi) has levied a fine of Rs 27.94 lakh on him.

Also Read

First Published: Feb 07 2018 | 6:20 PM IST

Next Story