Markets regulator Sebi on Wednesday imposed penalties totalling ₹15 lakh on three entities for indulging in non-genuine trades within the illiquid inventory choices section on BSE.
In separate orders, the regulator levied a superb of ₹5 lakh every on Gouri Sankar Agarwal HUF, Sukriti Sinha and Sanjana Jain.
The orders got here after Sebi noticed massive scale reversal trades within the inventory choices section on BSE, resulting in creation of synthetic volumes within the section.
Securities and Change Board of India (SEBI) carried out an investigation into the buying and selling exercise in illiquid inventory choices on BSE for the interval April 2014 to September 2015 after observing massive scale reversal of trades within the inventory choices section of the BSE.
The investigation revealed that out of the whole trades executed through the investigation interval on the BSE inventory choices section, round 81% have been reversal / non-genuine.
Reversal trades are alleged to be non-genuine in nature as they’re executed within the regular course of buying and selling, which ends up in a false or deceptive look of buying and selling by way of producing synthetic volumes.
Supply: Live Mint