Sebi levies Rs 15 lakh fine on 3 entities for non-genuine trades

Capital markets regulator Sebi on Wednesday imposed penalties amounting to Rs 15 lakh on three entities for non-genuine trades in illiquid stock options on BSE.

In three separate orders, the regulator levied a fine of Rs 5 lakh each on Gopal Prasad Poddar HUF, Govind Poddar HUF and Govind Kumar Shah HUF. The orders came after Sebi observed large reversal scale trades in the illiquid stock options segment on BSE, leading to the creation of artificial trade volumes.

By indulging in such trades in stock options, they flouted the provisions of PFUTP (Prohibition of Fraudulent and Trade Practices). The Securities and Exchange Board of India (Sebi), conducted a probe into the trading activity in illiquid stock options on BSE for the period April 2014 to September 2015 after observing large scale trades in the stock options segment on BSE.

Capital markets regulator Sebi on Wednesday imposed penalties amounting to Rs 15 lakh on three entities for non-genuine trades in illiquid stock options on BSE. In three separate orders, the regulator levied a fine of Rs 5 lakh each on Gopal Prasad Poddar HUF, Govind Poddar HUF and Govind Kumar Shah HUF. The orders came…

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