9 Entities Receive Rs. 45 Lakh in Penalties From Sebi For Non-Genuine Trading, Details Here

The capital market regulator Sebi fined nine organizations a total of Rs 45 lakh on Tuesday for engaging in phony transactions in the BSE’s illiquid stock options market.

Sebi Sanctions

The regulator fined Vivek Company, Soundlight Projects, S R Realbuild, Srijan Dealers, Manomay Dealmark, Zodiac Vanijya, VKJ Trexim, Hans Homes, and Guruteg Bahadur Rice Mill a total of Rs 5 lakh in nine different orders.

The orders were made when Sebi saw many, massive reverse transactions on the BSE’s illiquid stock options market, which created fictitious volumes on the exchange.

Following that, it looked into the trade activity of specific companies operating in the sector from April 2014 to September 2015.

Among those who participated in the execution of reversal transactions were the nine organizations punished on Tuesday.

Reversal transactions are said to be non-genuine in nature since they are completed during regular trading hours, creating an artificial impression of trading and producing false or misleading volumes, according to the regulator.

The PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) standards have been broken by the businesses by these actions.

The regulator dismissed the show-cause letters issued against 10 people on Monday in a separate ruling because the Titan Company Ltd (TCL) did not provide sufficient evidence to support the claim of an insider trading rule breach.

The order was issued after a judgement by the Securities Appellate Tribunal (SAT) on July 12 that nullified Sebi’s orders against 10 people for breaking insider trading laws in TCL shares and ordered the capital markets watchdog to issue a new order.