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

Capital markets regulator Sebi on Monday 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 Vinit Jagdishprasad Kedia, Shiv Kumar Sarda HUF and Bajrang Lal Dalmia HUF.

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

The Securities and Exchange Board of India (Sebi) conducted an investigation 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.