768 Entities Settle Non-Genuine Trades Cases in BSE with Sebi's 2024 Scheme

A total of 768 entities settled cases involving alleged non-genuine trades in the stock options segment on BSE with the Securities and Exchange Board of India (Sebi) under the ISO Settlement Scheme, 2024. The scheme was extended due to high interest, and most entities paid Rs 1.2 lakh or Rs 2.4 lakh as settlement charges.

A total of 768 entities have settled cases concerning non-genuine trades in the stock options segment on the BSE with Sebi under the newly introduced ISO Settlement Scheme, 2024, the markets regulator announced Monday.

Sebi initially launched the settlement scheme in 2022, allowing entities to resolve their cases. Those who did not participate continued to face legal proceedings, some of which were challenged in the Securities Appellate Tribunal (SAT). In a September 2023 hearing, SAT indicated that future schemes should cover these appellants. As a result, Sebi introduced the ISO Settlement Scheme, 2024 for assistance.

The scheme was open from March 11 to May 10, but extended to June 10 due to high interest. Most entities paid Rs 1.2 lakh or Rs 2.4 lakh in settlement charges. Sebi confirmed many entities had executed reversal trades in BSE's illiquid stock options segment from April 2014 to September 2015, violating PFUTP rules.

(With inputs from agencies.)