Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now

You can switch off notifications anytime using browser settings.
Stock Analysis, IPO, Mutual Funds, Bonds & More

Sebi levies Rs 22 lakh fine on 3 entities for fraudulent trade in illiquid stock options

The regulator imposed a fine of Rs 12.2 lakh on Excell Steel and Rs 5 lakh each on Gokul Financial Advisors and Universal Enterprises.

Oct 25, 2019, 07.14 PM IST
New Delhi: Capital markets regulator Sebi has levied a total penalty of over Rs 22 lakh on three entities for indulging in fraudulent trading in the illiquid stock options segment on the BSE.

The regulator imposed a fine of Rs 12.2 lakh on Excell Steel and Rs 5 lakh each on Gokul Financial Advisors Pvt Ltd and Universal Enterprises Ltd.

The orders follow a probe conducted by markets regulator from April 2014 to September 2015 after it observed large scale reversal of trades in illiquid stock options segment on the bourse that led to creation of artificial volume.

In separate orders, Sebi noted that the entities violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations by executing reversal trades in the stock options segment.

Reversal trades are those trades in which an entity reverses its buy or sell positions in a contract with subsequent sell or buy position with the same counter party during the same day.

"It cannot be ignored that synchronization of trades in pre-determined manner had an adverse impact on the fairness, integrity and transparency in the securities market," Sebi said in similarly worded orders.

Also Read

Sebi issues operational guidelines for FPIs

Sebi issues clarifications on PIT Regulations

GIC settles insider trading case with Sebi

Sebi relaxes group exposure limit for MFs

V S Sundaresan takes charge as Sebi executive director

Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links

Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service