Capital markets regulator Sebi on Thursday slapped penalties totalling Rs 20 lakh on 4 entities for indulging in non-genuine trades within the illiquid inventory choices section on BSE. The regulator imposed a tremendous of Rs 5 lakh every on Niruben Manojbhai Chudasama, Raj Kumar Lohiya, Nufact Merchandise Pvt Ltd and Nitu Agarwal.
Sebi had noticed large-scale reversal trades within the illiquid inventory choices section on BSE, resulting in synthetic volumes on the alternate. The regulator performed an investigation into the buying and selling actions of sure entities engaged within the section from April 2014 to September 2015. The 4 entities which have been fined on Thursday have been amongst those that indulged within the execution of reversal trades.
Reversal trades are alleged to be non-genuine in nature as they’re executed within the regular course of buying and selling, which results in a false or deceptive look of buying and selling by way of producing synthetic volumes, the regulator mentioned. By indulging in these acts, the entities violated the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.
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