SEBI Cracks Down on Non-Genuine Trades, Imposes Fines Totaling Rs 15 Lakh

SEBI fined several entities, totaling Rs 15 lakh, for non-genuine trades in BSE's illiquid stock options segment. Orders were issued against individuals and brokers for creating artificial trade volumes and regulatory violations. Inspections covered compliance for brokers and research analysts from April 2014 to February 2024.

The Securities and Exchange Board of India (SEBI) has taken decisive action against non-genuine trades by imposing fines totaling Rs 15 lakh on several entities. These fines target reversal trades that artificially inflate volumes in BSE's illiquid stock options segment.

Among those penalized are Brindawan Pandey, Gothi HUF Shavji Raja, Saurabh Khetan, Rudra Shares & Stock Brokers Ltd, and Arun N, each fined various amounts for their respective regulatory breaches. SEBI's orders follow investigations and inspections carried out over different periods, with violations including non-compliance with Know Your Customer requirements.

The regulator's crackdown underscores its commitment to maintaining the integrity of trading practices. SEBI continues to monitor compliance among brokers and analysts, aiming to prevent artificial manipulation in stock markets.

(With inputs from agencies.)