Sebi fines 4 entities for fraudulent trade in stock options

Markets regulator Sebi has imposed a total penalty of over Rs 2000000 on four firms for indulging in fraudulent trades, which created artificial volume in the illiquid stock options segment on the BSE. The regulator has levied a fine of Rs 500000 each on Avinash Infra Projects, Bina Udyog, Balajee Structurals and Rs 5.500000 on Blackcherry Commosale. The Securities and Exchange Board of India (Sebi) conducted an investigation into the trading activities of certain entities in illiquid stock options at the BSE between April 2014 to September 2015, after observing large-scale reversal of trades in the bourse's stock options segment. By indulging in such trades, these entities violated provisions of the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations, it added. Accordingly, these firms are fined for non-genuine trade practices.