Sebi slaps Rs 25-lakh fine on 5 entities

Markets regulator Sebi has slapped a total fine of Rs 2500000 on five entities for executing fraudulent trades, leading to creation of artificial volume in the illiquid stock options segment on the BSE. Those facing the penalties are Gladiator Vyapaar, Pratik Steelcasting, Jodhraj Finassist, Kamna Housing and Babubhai Ramanlal Patel, according to Sebi orders. The Securities and Exchange Board of India (Sebi) conducted an investigation between April 2014 and September 2015 into the trading activities in illiquid stock options on the BSE after observing large-scale reversal of trades in the stock options segment. During the probe, the regulator found that entities had executed several reversal trades with the same entities on the same day which were "non genuine in nature", thereby leading to false and misleading appearance of trading in illiquid stock options. Accordingly, Sebi imposed a fine of Rs 500000 each on the five entities.