SEBI imposed a penalty totalling Rs 50 lakh on 10 entities, including individuals, for indulging in non-genuine trades in illiquid stock options at the BSE.
SEBI has levied a fine of Rs 5 lakh each on Amigo Trexim, Gracier Commodities, Gomati Devi Soni, Goldmoon Realcon, GKS Reality, Nikhil Jalan and Sons HUF, Begum Gulerana, Arpita Sikaria, Goutam Jain and Sons HUF, and Dharam Bir HUF on 10 separate orders, the regulator said.
SEBI observed a large-scale reversal of trades in the stock options segment of the BSE.
The regulator conducted an investigation into the trading activities of certain entities in illiquid stock options at the BSE for the period between April 2014 and September 2015.
The non-genuine trades resulted in the creation of artificial volume to the tune of 826.21 crore units or 54.68 per cent of the total market volume in the stock options segment of the BSE.
According to Sebi, these entities were instrumental in the creation of artificial volume in the illiquid stock option contracts at the BSE during the investigation period by executing reversal or non-genuine transactions in the illiquid stock options segment at the exchange.
(With inputs from PTI)
