Securities and Exchange Board of India (SEBI) fined six firms Rs 30 lakh for holding illiquid stock options

Securities and Exchange Board of India (SEBI) fined six firms Rs 30 lakh for holding illiquid stock options SEBI, the market regulator, fined six companies, including individuals, a total of Rs 30 lakh for de facto trading in non-genuine stock options on the BSE. In six separate decisions, the regulator fined Lotwala Mikil Vijaykumar HUF, Rajendra Kumar Jain, Rajendra D Thakkar, Abhishek Agarwal, Radha A Gupta, and Bimla Devi Mundra Rs 5 lakh apiece. The Securities and Exchange Board of India (SEBI) saw a huge reversal of deals in the BSE's stock options section. It was observed that such enormous reversal of trades in stock options creates fictitious volume on the BSE. In light of this, the regulator investigated the trading activity of some businesses on the BSE in illiquid stock options from April 2014 to September 2015. According to the study, 81.38 percent of approximately 2.91 lakh trades executed in the BSE's stock options section were non-genuine trades throughout the time of investigation. Non-actual trades led in the production of false volume in the BSE stock options segment of 8262.1 million units, or 54.68 percent of total market volume. These eight businesses were discovered to be among the different entities involved in the execution of reversal trades on the BSE's Stock Options segment. According to SEBI, these businesses were involved in the fabrication of false volumes in illiquid stock option contracts on the BSE during the POI by engaging in reversal or non-realistic transactions in the exchange's illiquid stock options section. They violated the prohibitions of the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) standards by engaging in such trading, according to Sebi in six different orders issued between December 3 and December 8.