Sebi imposes penalties worth Rs 15 lakh on 3 entities for non-genuine trades

Capital markets regulator Sebi on Friday imposed penalties totalling Rs 15 lakh on three entities for indulging in non-genuine trades in illiquid stock options on BSE.

In three separate orders, the regulator slapped a fine of Rs 5 lakh each on Anita Nyati, Ankita Khandelwal and Navneet Jain HUF.

The orders came after Sebi observed large scale reversal trades in the stock options segment on BSE, leading to creation of artificial volumes in the segment.

The Securities and Exchange Board of India conducted an investigation (Sebi) into the trading activity in illiquid stock options from April 2014 to September 2015 after observing large scale trades in the stock options segment on BSE.

By indulging in such trades in stock options, they violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations.

In another order, Sebi imposed a penalty of Rs 6 lakh each on Websol Energy and Sohan Lal Agarwal for disclosure lapses in a four-year old case.

Agarwal, who was MD of the company at the time of violation, entered into four sale transactions during the quarter April-June 2018 but the requisite disclosures were not made.