Markets regulator Sebi Tuesday slapped a fine of Rs 25 lakh on Shree Siddhivinayak Realtors and Securities for indulging in manipulative trades in illiquid stock options segment on the BSE.
"...trades of Noticee (Shree Siddhivinayak) were non genuine and have created false or misleading appearance of trading in terms of artificial volume in stock options and therefore manipulative, deceptive in nature," Sebi said while imposing fine on the firm.
After observing large scale reversal of trades in BSE's stock options segment, the regulator conducted an investigation into the trading activity in illiquid stock options on the exchange from April 2014 to September 2015.
The investigation revealed that the company was among the various entities that executed non-genuine trades in the stock options segment by reversing trades with same entities on the same day with wide variations in price.
By engaging in such trades, the firm violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations, the Securities and Exchange Board of India (Sebi) said.
The violation warrants imposition of monetary penalty, Sebi said, and imposed a fine of Rs 25 lakh on the firm.
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