sebi: Sebi imposes penalties worth Rs 25 lakh on 5 entities for non-genuine trades

New Delhi: Capital markets regulator Sebi on Wednesday slapped penalties totalling Rs 25 lakh on 5 entities for indulging in non-genuine trades within the illiquid inventory choices phase on BSE.

In 5 separate orders, the regulator imposed a tremendous of Rs 5 lakh every on Abhishek Kumar Jain HUF, Ajay Kumar Baid, Sumit Shankar Dudani, Sumer Chand Jain and Sons and Milestone Viniyog Pvt Ltd.

The orders got here after Sebi noticed giant scale reversal trades within the inventory choices phase on BSE, resulting in creation of synthetic volumes within the phase.

By indulging in such trades in inventory choices, they violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Commerce Practices) laws.

The Securities and Change Board of India (Sebi) performed an investigation into the buying and selling exercise in illiquid inventory choices on BSE for the interval April 2014 to September 2015 after observing giant scale reversal of trades within the inventory choices phase on BSE.