Sebi imposes penalties worth Rs 25 lakh on 5 entities for non-genuine trades

New Delhi: Capital markets regulator Sebi on Wednesday slapped penalties totalling Rs 25 lakh on five entities for indulging in non-genuine trades in the illiquid stock options segment on BSE.

In five separate orders, the regulator imposed a fine of Rs 5 lakh each on Abhishek Kumar Jain HUF, Ajay Kumar Baid, Sumit Shankar Dudani, Sumer Chand Jain and Sons and Milestone Viniyog Pvt Ltd.

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.


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

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