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Sebi slaps Rs 20 lakh fine on 4 individuals for non-genuine trades
Sebi on Tuesday slapped fines totalling Rs 20 lakh on four individuals for indulging in non-genuine trades in the illiquid stock options segment on BSE.
In four separate orders, the regulator imposed a fine of Rs 5 lakh each on Manish Kumar Kanodia, Seeta Devi Agrawal, Seema Charul Maisheri and Chandrani Dutta.
The Securities and Exchange Board of India (Sebi) had observed large-scale reversal trades in the illiquid stock options segment on BSE, leading to artificial volumes on the exchange.
The regulator conducted an investigation into the trading activities of certain entities engaged in the segment from April 2014 to September 2015.
The four individuals that have been fined on Tuesday were among those who indulged in the execution of reversal trades.
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.