Sebi imposes Rs 55 lakh on 11 entities for indulging in non-genuine trade

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Capital markets regulator Sebi on Thursday imposed penalties totalling Rs 55 lakh on 11 entities for indulging in non-genuine trade in the illiquid stock options segment on the BSE. In eleven separate orders, the regulator levied a fine of Rs 5 lakh each on Shilpa Chhabra, Shreya Kumari, Sharad Shivnarayan Kasat, Shri Krishan Goyal HUF, Shailesh Singh Prem Singh Negi, Shashank Tekriwal, Sheetal Gupta and Shri Ram Commoditie

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These eleven entities that have been fined on Thursday were among those who indulged in the execution of reversal trades. Reversal trades are alleged to be non-genuine in nature as they are executed in the normal course of trading, which leads to a false or misleading appearance of trading in terms of generating artificial volumes, the regulator said.

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By indulging in these acts, the entities violated the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.