Sebi Cracks Down on Non-Genuine Trades in BSE Stock Options

Capital markets regulator Sebi imposed Rs 20 lakh penalties on four entities for non-genuine trade activities in BSE's illiquid stock options. Sebi observed that reversal trades created artificial volumes, violating PFUTP norms. Other penalties were imposed in related cases for similar activities.

The capital markets regulator, Sebi, has imposed penalties totaling Rs 20 lakh on four entities found guilty of engaging in non-genuine trading activities within the illiquid stock options segment of the BSE. This was revealed in orders released Thursday.

Penalties of Rs 5 lakh each were levied on Preview Vinimay Pvt Ltd, Paramjyoti Tradelinks, Siddharth Kalani, and Anil Kumar Banka. This action follows Sebi's observations of widespread trade reversals in BSE's stock options, leading to artificial volume creation.

Sebi's investigation, covering trades from April 2014 to September 2015, identified these entities among others as participants in reversal trades. The actions constituted a breach of the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations, the regulator noted.

(With inputs from agencies.)