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Sebi slaps Rs 19 lakh fine on 2 entities for fraudulent trading

The entities facing penalty are - Akashganga Agencies Pvt Ltd and Ajeit PS Rajbans HUF.

Sep 16, 2019, 07.40 PM IST
New Delhi: Markets regulator Sebi on Monday levied a total fine of over Rs 19 lakh on two entities for executing fraudulent trade in the illiquid stock option segment on the BSE.

The entities facing penalty are - Akashganga Agencies Pvt Ltd and Ajeit PS Rajbans HUF.

Pursuant to observing large scale reversal of trades in the stock options segment of the BSE, Securities and Exchange Board of India (Sebi) conducted investigation into the trading activities of the segment between April 2014 and September 2015.

Sebi noted that the entities were among the several entities which were indulged in execution of non genuine trades in the stock options segment on the BSE.

"The synchronized trading by the Noticee with same counter party at same time for same quantity at same price and reversal of transaction with wide variation in price of the reversed trades in the same contract in a short time without any basis, all indicate that the trades executed by the Noticee were not genuine trades," Sebi said in similarly worded separate orders.

By doing so, the entities violated provisions of Prohibition of Fraudulent and Unfair Trading Practices (PFUTP) norms.

"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 while levying the fine.

The regulator imposed a fine of Rs 14.20 lakh on Akashganga Agencies and Rs 5 lakh on Ajeit PS Rajbans HUF.

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