BSE stock options: Sebi fines 2 entities Rs 18 lakh for non-genuine trades

Markets regulator Sebi Monday levied a total fine of Rs 18 lakh on two entities for executing non-genuine trades in illiquid stock options segment on the BSE.

The two entities  Shri Radha Krishna Ispat Pvt Ltd and Shiv Parvati Leasing Pvt Ltd were fined Rs 10.3 lakh and Rs 7.8 lakh, respectively, as per Sebi's separate orders.

After observing large scale reversal of trades in BSE's stock options segment, the Securities and Exchange Board of India (Sebi) conducted an investigation into the trading activity in illiquid stock options on the exchange from April 2014 to September 2015.

The probe found that the two companies were among the various entities that executed non-genuine trades in the stock options segment by reversing trades with same entities on the same day with wide variations in price.Considering the reversing of trades within minutes with wide variations in prices without any basis, the reversal trades executed by the two entities were 'non-genuine' in nature and created a misleading impression of trading, the regulator said.

By engaging in such trades, the entities violated PFUTP regulations, which states that dealing in securities will be deemed to be fraudulent if it involves indulging in an act which creates false or misleading appearance of trading in the securities market, Sebi said while imposing penalty on the two entities.PFUTP stands for Prohibition of Fraudulent and Unfair Trade Practices.  

DIN To Make Tax Administration Transparent

 New Delhi: All communications to assessees by the income tax department will  carry a Document Identification Number (DIN), the CBDT said W...

Airtel shares fell 4% due to announcements about Jio

Reliance Industries made a number of announcements at its 42nd general meeting on Monday. Today, when the stock market opened on Tuesday, the effect w...

Gold and silver price Hike

New Delhi. According to All India Bullion Association (AISA), on Saturday, gold of 99.9 percent and 99.5 percent purity rose by Rs 90-90 to Rs 38,420 ...

Centre Plans Risk Allowance For Govt Employees

New Delhi :The government will pay up to Rs 25,000 per month as risk allowance under the 7th Pay Commission, depending on the department and employee'...