Sebi imposes Rs 1 crore fine on 13 entities for manipulative trade in BSE stock option
Markets regulator Sebi Thursday slapped a total penalty of Rs 1.11 crore on 13 entities for executing fraudulent trades in the illiquid stock option segment on BSE.
Chitragupta Sales & Services, Basic Clothing Pvt Ltd, Cellour Commercial Pvt Ltd, Vishal Ferro Alloys, R P Computer Forms Pvt Ltd, Gajanan Enterprises, Overactive Merchants Pvt Ltd, Kamlesh Betala Trading, Pushkar Commercial Ltd, Confidence Finance and Trading, Mav Steels Pvt Ltd, M M Commodities and M J Shares & Securities are the thirteen entities facing the action, as per separate orders of Sebi.
After observing a large-scale reversal of trades in the bourse's stock options segment, Sebi conducted a probe into the trading activity in illiquid stock options on the BSE from April 2014 to September 2015.
Following the probe, the regulator found that the entities bought and sold option contracts with the same counterparties and also reversed trades on the same day at substantial price difference, making such trades .