Sebi Fines 4 Entities Rs 20 Lakh for Non-Genuine Trades

New Delhi, Oct 17 (PTI) Capital markets regulator Sebi on Thursday slapped penalties totalling Rs 20 lakh on four entities for indulging in non-genuine trades in illiquid stock options segment on the BSE.

In four separate orders, the regulator imposed a fine of Rs 5 lakh each on Preview Vinimay Pvt Ltd, Paramjyoti Tradelinks, Siddharth Kalani, and Anil Kumar Banka.

The Securities and Exchange Board of India (Sebi) observed large scale reversal of trades in stock options segment of BSE.

The regulator observed that such large scale reversal of trades in stock options leads to creation of artificial volume at BSE.

Thereafter, Sebi conducted an investigation into the trading activities of certain entities in illiquid stock options at BSE for the period from April 2014 to September 2015.

The entities to be fined were among those who indulged in reversal trades, Sebi said in the four separate orders.

Sebi observed that the noticees (Preview Vinimay Pvt Ltd, Paramjyoti Tradelinks, Siddharth Kalani and Anil Kumar Banka) had indulged in reversal trades with its counterparty in the stock options segment of BSE and the same were non-genuine trades.

In view of the above, the violation of regulations of PFUTP against the noticees stands established.

By indulging in such trades, the entities violated the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms, it added.

In three separate orders on Tuesday, Sebi slapped a penalty of Rs 5 lakh each on Amit Kumar Choudhary HUF, Krishna Swarup Shukla and Jeevan Kumar Agarwal for indulging in non-genuine trades in illiquid stock options segment on the BSE.