The capital market regulator Securities and Exchange Board of India (SEBI) has imposed penalties of Rs 20 lakh on four entities found guilty of engaging in allegedly non-genuine trading activities within the illiquid stock options segment of the Bombay Stock Exchange (BSE).
The capital market regulator Securities and Exchange Board of India (SEBI) has imposed penalties of Rs 20 lakh on four entities found guilty of engaging in allegedly non-genuine trading activities within the illiquid stock options segment of the Bombay Stock Exchange (BSE).
The implicated entities penalised include Maya Devi Agarwal, Khushi Merchandise Pvt Ltd, Mohit Kumar Sharma and Aditi Agrawal were fined Rs 5 lakh each for participating in these fraudulent activities.
The SEBI adjudicating officer (AO) Barnali Mukherjee in four separate orders articulated that the trading behaviour of the implicated entities indicate that the trades executed were not genuine trades and being non-genuine, created an appearance of artificial trading volumes in respective contracts in violation of SEBI Regulations.
The market regulator probe trading activities spanning April 2014 to September 2015 and found a staggering 291,744 trades, accounting for about 81.40% of all trades executed in the stock options segment were potentially non-genuine. The alarming statistic underscored the fraudulent activities distorted the market by creating artificial volumes.
The SEBI alleged the trades to be non-genuine and created a false or misleading appearance of trading in terms of artificial volumes in stock options and, therefore, were alleged to be manipulative and deceptive.
