New Delhi (Agency):India’s capital markets regulator, the Securities and Exchange Board of India (Sebi), has issued fines of Rs 30 lakh each to six entities. They have been accused of conducting non-genuine trades in the illiquid stock options segment on the Bombay Stock Exchange (BSE). The six entities – Shrenil L Zaveri, Skyrail Logistics, New Star System Solutions, Seema Didwania, Saroj Devi Bajoria, and Pawan Kumar Kejriwal HUF – were each fined Rs 5 lakh in separate orders on Monday.
Sebi’s decision followed observations of large-scale reversal of trades in BSE’s illiquid stock options segment. This activity created artificial trading volumes on the exchange. Sebi carried out an investigation into the trading practices of certain entities in this segment on the BSE between April 2014 and September 2015.
Sebi stated that the six fined entities were among those executing reversal trades. These trades, described as non-genuine, are conducted during regular trading and create a false or misleading appearance of trading volume, according to the market watchdog.
These entities were found to be violating the provisions of the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP). In a different order, Sebi also imposed a penalty of Rs 5 lakh each on SMC Capitals and Karvy Investor Services for disregarding merchant banking norms.
The entities have been ordered to pay the fine jointly and severally. This crackdown by Sebi aims to maintain fair and transparent trading practices in the Indian capital market.