Sebi Imposes Penalties for Non-Genuine Trades in BSE Options

Sebi has penalized 10 entities a total of Rs 50 lakh for engaging in non-genuine trades in the BSE's illiquid stock options segment. The fines were issued after an investigation into large-scale trade reversals that created artificial volumes. A separate order also cancelled a registration for non-compliance.

On Friday, the Securities and Exchange Board of India (Sebi) penalized 10 entities with fines totaling Rs 50 lakh for conducting non-genuine trades in BSE's illiquid stock options segment. Each entity, including Sachin Jain HUF and Moti Lal Baid, received an individual fine of Rs 5 lakh.

An investigation was initiated when Sebi noticed large-scale reversal of trades in this segment, which suggested the creation of artificial trading volumes. These reversal trades reportedly lacked basic trading rationale, leading to misleading appearances in trading activity.

In a separate action, Sebi revoked the merchant banker registration of Corporate Strategic Allianz Pvt Ltd for violating norms, following an inspection covering the period from April 2022 to September 2023.

(With inputs from agencies.)