SEBI penalizes 11 entities for non-genuine trades in illiquid stock options segment
The Securities and Exchange Board of India (SEBI) has levied penalties totalling Rs 55 lakh on 11 entities for indulging in non-genuine trades in the illiquid stock options segment on the BSE.
The entities were found to have engaged in reversal trades, which are non-genuine as they are executed in the normal course of trading, leading to a false or misleading appearance in terms of generating artificial volumes.
SEBI said that the entities violated the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms by indulging in such trades.
In a separate order, SEBI imposed fines totalling Rs 20 lakh on two entities for flouting disclosure rules in the matter of IFL Promoters Ltd.
In another order, the regulator suspended the registration of 3M Team Research Pvt Ltd for a period of one year for violating the regulatory norms.
This is a significant development, as it shows that SEBI is taking a tough stance on market manipulation and other forms of unfair trade practices. Investors should be aware of these risks and take necessary precautions to protect themselves.
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