Sebi slaps over Rs 17 lakh fine on 3 entities for non-genuine trades in BSE stock options

Markets regulator Sebi Tuesday imposed a total penalty of over Rs 17 lakh on three entities for indulging in fraudulent trading in the illiquid stock options segment on the BSE.

The Securities and Exchange Board of India (Sebi) observed large-scale reversal of trades in the stock options segment of the stock exchange and conducted an investigation between April 2014 and September 2015.

Pursuant to the investigation, it was found that 81.38 per cent of all the trades executed in the segment were non-genuine in nature.

The entities executed reversal of trades by reversing their buy or sell positions in a contract with the same counter-party during the same day, Sebi said.

"Noticee, by engaging in such non-genuine transactions, created a misleading impression of trading in respective contracts while dealing in stock options contracts in a fraudulent manner," Sebi said in similarly worded three separate orders.

Noticees are Shri Sarvasarai Balaji Steels, Sri Shyam Baba Ferro Alloys and ...