 "SEBI")
Capital market regulator Sebi has imposed fines totalling Rs 35 lakh on seven entities for indulging in non-genuine trades in the illiquid stock options segment on the BSE.
In seven separate orders on Monday, the regulator slapped a fine of Rs 5 lakh each on Subhash Kumar Poddar HUF, Manoj Kumar Goenka HUF, Ayan Akhter Husain, Ankita Didwania, Rakesh Golechha, Ankur Taneja HUF and Yogesh Kumar Gupta HUF.
Sebi had observed large-scale reversal trades in the illiquid stock options segment on the BSE, leading to artificial volumes on the exchange.
Further, the regulator conducted an investigation into the trading activities of certain entities engaged in the segment from April 2014 to September 2015.
The seven entities fined on Monday were among those who indulged in the execution of reversal trades.
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Reversal trades are alleged to be non-genuine in nature as they are executed in the normal course of trading, which leads to a false or misleading appearance of trading in terms of generating artificial volumes, the regulator said.
By indulging in such trades, the entities violated the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.
In another order on Monday, Sebi cancelled the registration of brokerage firm Rudra Comventures, formerly known as Gigantic Commodities, for facilitating its clients to trade in illegal paired contracts on the now defunct National Spot Exchange Ltd.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
