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SEBI Penalty on 7th Entities: The Securities and Exchange Board of India (SEBI) has imposed heavy fines on seven entities for non-genuine trading in the illiquid stock options segment of BSE. On Tuesday, a fine of Rs 35 lakh has been imposed on these institutions by SEBI. The regulator has imposed fine on these institutions for different reasons.
SEBI has imposed a fine of Rs 5 lakh each on Pawan Kumar Sarwagi HUF, Subha Laxmi Trading Corporation, STIC Tradecom, Starlight Devcon, Devesh Comocel, Devinder Kumar and Kishorchandra Gulbabhai Desai. SEBI has observed large scale reversal of trades in the illiquid stock options segment of BSE before imposing this penalty. SEBI observed that volume has been created on the exchange.
SEBI had investigated
SEBI had investigated the trading activities of some entities engaged in the segment on BSE from April 2014 to September 2015. SEBI said that these seven entities were among those who executed reversal trades. The market watchdog said that reversal trades are considered non-real.
Why heavy fine was imposed
They are in the normal course of trading and create false or misleading propaganda or create misleading conditions to artificially generate volumes. SEBI said that the entities had violated the provisions of Prohibition of Fraudulent and Unfair Trade Practices (PFUTP).
SEBI keeps an eye
Explain that SEBI keeps a close watch on the stock market and takes action on any wrong activities. In the past, SEBI had fined several organizations for spreading fraud and misleading. At the same time, many were also suspended for the stock market.
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