Sebi Imposes Rs 35 Lakh Fine for Fake Trades in BSE Options

Markets regulator Sebi has fined seven individuals a total of Rs 35 lakh for engaging in non-genuine trades in the illiquid stock options segment of the Bombay Stock Exchange (BSE). The penalties followed an investigation into reversal trading practices that generated artificial trading volume.

The Securities and Exchange Board of India (Sebi) has levied fines totaling Rs 35 lakh against seven individuals for participating in fake trades within the illiquid stock options segment at the Bombay Stock Exchange (BSE).

Sebi imposed Rs 5 lakh penalties on each individual after an investigation revealed extensive reversal of trades in this segment, which artificially inflated trading volumes.

The watchdog concluded that these fictitious trades were non-genuine under PFUTP rules and confirmed the involvement of six individuals in deceptive trading activities, manipulated to create misleading appearances of market activity.

(With inputs from agencies.)