Sebi Cracks Down on Non-Genuine Trades in BSE's Illiquid Stock Options

The Securities and Exchange Board of India (Sebi) has fined eight entities a total of Rs 40 lakh for engaging in non-genuine trades within the BSE's illiquid stock options segment. The entities collectively performed reversal trades that artificially inflated market activity and volume.

The Securities and Exchange Board of India (Sebi) has taken decisive action against eight entities, collectively imposing a fine of Rs 40 lakh for engaging in non-genuine trading practices in the illiquid stock options segment of the Bombay Stock Exchange (BSE).

The regulator issued fines of Rs 5 lakh each to the involved parties, citing large-scale reversal trades that created artificial volume and misleading market activity. This follows an in-depth investigation by Sebi, covering the period from April 2014 to September 2015.

Reversal trades, labeled as lacking trading rationale, are deemed deceptive and manipulative, according to Sebi. Additional fines were also imposed on other entities for similar activities, underscoring Sebi's commitment to market integrity.

(With inputs from agencies.)