Sebi slaps Rs 15 lakh penalty on three entities

Capital markets regulator Sebi on Friday imposed penalties totalling Rs 15 lakh on three entities for indulging in non-genuine trades in illiquid stock options segment on BSE.

In three separate orders, the regulator levied a fine of Rs 5 lakh each on Rekha Pradeep Gangolli, Banwri Lal Sultania HUF and Sanjay Khandelwal.

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

Securities and Exchange Board of India (Sebi) conducted an investigation into the trading activities of certain entities in illiquid stock options at BSE for the period — April 2014 to September 2015.

The market regulator noted that such trades are non-genuine in nature and created false or misleading appearance of trading in terms of artificial volumes in stock options.

During the investigation, it was observed that these entities were among those that indulged in execution of reversal trades in stock options segment on BSE.

By indulging in such trades in stock options, they flouted the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms, it added.