SEBI penalizes 11 entities for non-genuine trades in illiquid stock options segment

| Leave a Comment | News All

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.


Related News

  • 22 Sep

    HDFC Bank stock expected to re-rate in next 12-18 months, says Motilal Oswal’s Nitin Aggarwal

    Aggarwal is bullish on HDFC Bank's long-term prospects, but he believes that investors should wait and see how the bank executes in the near term.

  • 22 Sep

    Sai Silks’ IPO attracts lukewarm response, analysts raise concerns

    Sai Silks Kalamandir's IPO received a lukewarm response with a subscription rate of just 0.07 times. Analysts have raised concerns about the company's high debt levels, intense competition in the industry, and the fact that half of the issue size is an OFS. The company also has 30 percent of its promoter holdings pledged. Despite these concerns, the company's management is confident about its growth prospects.

  • 22 Sep

    PSU bank shares make a comeback on JPMorgan’s index inclusion decision

    PSU bank shares made a strong comeback on September 22, after JPMorgan's decision to include Indian government bonds in its emerging-market index boosted investor sentiment. However, analysts are urging caution with regard to the PSU bank space, citing the risks of investing in smaller PSU banks and the potential for divestment in some of the larger banks. Investors should carefully consider the risks and rewards before investing in PSU bank shares.

  • 22 Sep

    Zaggle Prepaid Ocean Services Stock Makes Weak Debut, Analysts Recommend Selling

    Zaggle Prepaid Ocean Services stock made a muted debut on bourses on September 22, listing at a premium of just 0.6% over the IPO price. Analysts have recommended selling the stock on the opening day, citing its high P/E valuation, debt-to-equity ratio, and negative cash flow.

  • 22 Sep

    Market Summary for September 22, 2023

    Indian equity markets closed in the green on September 22, 2023, supported by buying in select banking and automobile stocks. Sectors such as pharma, information technology, and metals were the major drags. Options data suggests a sideways to positive momentum in the near term.

Leave a Reply

Your email address will not be published. Required fields are marked *