sebi: Sebi levies Rs 35 lakh high-quality on 7 entities for non-genuine trades

Capital markets regulator Sebi on Tuesday levied fines totalling Rs 35 lakh on seven entities for indulging in non-genuine trades within the illiquid inventory choices section on BSE. In seven separate orders, the regulator slapped a high-quality of Rs 5 lakh every on Pawan Kumar Sarawagi HUF, Subh Laxmi Buying and selling Co, STIC Tradecomm, Starlight Devcon, Devesh Commosale, Devinder Kumar and Kishorechandra Gulabbhai Desai.

The Securities and Change Board of India (Sebi) noticed large-scale reversal of trades within the illiquid inventory choices section of BSE, resulting in the creation of synthetic volumes on the bourse.

It carried out an investigation into the buying and selling actions of sure entities engaged within the section on BSE from April 2014 to September 2015.

In keeping with Sebi, these seven entities had been amongst those that indulged within the execution of reversal trades.

The reversal trades are alleged to be non-genuine in nature as they’re executed within the regular course of buying and selling, which results in a false or deceptive look of buying and selling by way of producing synthetic volumes, the markets watchdog mentioned.

The entities had flouted the provisions of PFUTP (Prohibition of Fraudulent and Unfair Commerce Practices).