Sebi levies Rs 20.4 lakh fine on 4 firms for fraudulent trade in illiquid stock options
The orders follow a probe conducted by the regulator between April 2014 and September 2015.
Noting that fraudulent trades deserve imposition of monetary penalty, Sebi levied a fine of Rs 5 lakh each on Greenbucks Securities Pvt Ltd, Greenbucks Comtrade Pvt Ltd, Tansy Trading Pvt Ltd and Rs 5.40 lakh on Ashiana Ispat Ltd.
The orders follow a probe conducted by the regulator between April 2014 and September 2015 wherein Sebi noted that the four firms were among the various entities that indulged in execution of reversal trades in the stock options segment of the BSE.
"The trades entered by the Noticee were reversed on the same day within few minutes with same counterparty at a substantial price difference without any basis for significant change in the contract price which indicates that these trades are artificial and non-genuine in nature," Sebi said in similarly worded separate orders.
Besides, the orders noted that "the non-genuine and deceptive trades as found in this case are covered under the definition of 'fraud' and dealing of Noticee were fraudulent."