Capital markets regulator Sebi on Tuesday imposed penalties totalling ₹20 lakh on 4 entities for indulging in non-genuine trades in illiquid inventory choices on BSE.
In 4 separate orders, the regulator levied a effective of ₹5 lakh every on Sanjay Mangal, Ashu Garg, Mandeep Singh and Krishna Ojha.
The orders got here after Sebi noticed large-scale reversal trades within the inventory choices phase on the BSE, resulting in the creation of synthetic quantity within the phase.
Securities and Change Board of India (Sebi) carried out an investigation into the buying and selling exercise in illiquid inventory choices on Bombay Inventory Change (BSE) from April 2014 to September 2015 after observing massive scale reversal of trades within the inventory choices phase.
The investigation findings revealed that of all trades executed throughout the investigation interval within the inventory choices phase of BSE, 81.40% of the trades, had been concerned a reversal of purchase and promote positions by the purchasers and counter events in a contract.
Sebi famous that these entities had been among the many numerous others that indulged in execution of reversal trades within the inventory choices phase.
The reversal trades are alleged to be non-genuine in nature as they’re executed within the regular course of buying and selling, which results in a false or deceptive look of buying and selling by way of producing synthetic volumes, Sebi stated.
By indulging in such trades in inventory choices, they flouted the provisions of PFUTP (Prohibition of Fraudulent and Unfair Commerce Practices) norms.
Supply: Live Mint