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Sebi slaps Rs 45 lakh penalties on 9 entities for non-genuine trades
Capital market regulator Sebi on Tuesday levied penalties totalling Rs 45 lakh on nine entities for indulging in non-genuine trades in the illiquid stock options segment on BSE.
In nine separate orders, the regulator imposed a fine of Rs 5 lakh each on Vivek Company, Soundlight Projects, S R Realbuild, Srijan Dealers, Manomay Dealmark, Zodiac Vanijya, VKJ Trexim, Hans Homes and Guruteg Bahadur Rice Mill.
The orders came after Sebi observed large-scale reversal trades in the illiquid stock options segment on BSE, leading to artificial volumes on the exchange.
Thereafter, it conducted an investigation into the trading activities of certain entities engaged in the segment from April 2014 to September 2015.
The nine entities 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