Sebi imposes fine worth ₹15 lakh on 3 individuals for non-genuine trades

Apr 12, 2023

Capital markets regulator SEBI (Securities and Exchange Board of India) on Tuesday imposed penalties of ₹15 lakh on three individuals for indulging in non-genuine trades in the illiquid stock options segment on BSE, according to the news agency PTI.

The watchdog, in three separate orders, slapped a fine of ₹5 lakh each on Radha Devi Goenka, Radhey Shyam Manchanda, and Sanchit Arora. It observed a large-scale reversal of trades in the illiquid stock options segment of BSE.

SEBI also conducted an investigation into the trading activities of certain entities engaged in the segment on BSE from April 2014 to September 2015.

It informed that the three individuals were among those who indulged in the execution of reversal trades. They had violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices), PTI reported.

“The reversal trades are alleged to be non-genuine in nature as they are executed in the normal course of trading, which leads to a false or misleading appearance of trading in terms of generating artificial volumes," SEBI said.

Last year, the watchdog also imposed penalties amounting to ₹35 lakh on seven entities over non-genuine trades in illiquid stock options on BSE.

The regulator slapped a fine of ₹5 lakh each in seven separate orders on Vinita Agarwal, Arjun Sahoo HUF, Banwari Lal Arora HUF, Pranita Kayan, Dazy Jain, Manish Kumar Soni, and Vinit Kumar Agrawal.

[Mint]