Sebi Imposes Rs 40 Lakh Penalty on Eight Entities for Non-Genuine Trades

Sebi has levied penalties totaling Rs 40 lakh on eight entities for engaging in non-genuine trades in the illiquid stock options segment on the BSE. Additionally, fines were imposed on individuals and a stock broker for violating various regulations, following an extensive investigation and examinations conducted by the regulator.

On Monday, Sebi imposed penalties amounting to Rs 40 lakh on eight entities for participating in non-genuine trades within the illiquid stock options segment on the BSE.

The regulator issued eight separate orders, fining Rs 5 lakh each to Yogesh Goyal HUF, Manju Devi Poddar, Navjeet Singh Malhotra, Narendra Kumar Maheshwari, Sandip Agarwal, CHP Finance Pvt Ltd, Vijay Agarwal, and Sunita Sethia.

Sebi's investigation into trading activities from April 2014 to September 2015 revealed widespread reversal trades, creating artificial trading volumes on the exchange. As a result, these entities violated the PFUTP norms.

In a separate order, penalties of Rs 2 lakh were levied on Jatin Shah, Daivik Jatin Shah, and Heli Jatin Shah for disclosure lapses regarding ETT Ltd. Another Rs 2 lakh fine was imposed on VSE Stock Services Ltd (VSSL) for breaching stock broker norms following a joint inspection by Sebi and stock exchanges from April 2022 to October 2023.

(With inputs from agencies.)