SEBI Penalizes 9 Entities with Rs 45 Lakh for Non-Genuine Trades

30 Aug 2023 , 01:25 PM

SEBI imposes fines totaling Rs 45 lakh on nine entities for engaging in non-genuine trades in BSE’s illiquid stock options segment. The fines are individually set at Rs 5 lakh for each of the penalized entities, including Vivek Company, Soundlight Projects, S R Realbuild, Srijan Dealers, Manomay Dealmark, Zodiac Vanijya, VKJ Trexim, Hans Homes, and Guruteg Bahadur Rice Mill.

SEBI notices large-scale reversal trades in the illiquid stock options segment, leading to artificial volumes on BSE. Investigation conducted covering trading activities of entities from April 2014 to September 2015.

Reversal trades, executed in normal trading, are deemed non-genuine, generating misleading trading appearance. Entities violated PFUTP norms by participating in such acts.

Separately, SEBI cleared 10 individuals of insider trading allegations related to Titan Company Ltd (TCL). Allegations were not established following a Securities Appellate Tribunal (SAT) ruling on July 12. SAT overturned SEBI’s earlier orders, directing a fresh decision on insider trading violation 

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