New Delhi, March 26 (PTI) Capital market regulator SEBI imposed a fine on Wednesday ₹In the liquid stock options section of BSE, eight entities are addicted to eight entities.
Watchdog slap fine in eight separate orders ₹Dwitiya Trading Ltd, Vineeta Kabra, Puneet Sabharwal Huf, Hemant Purshotamdas Gopani Huf, Mudrikaben Pareshkumar Shah, Gopalkrishna Ratanlal Shah Huf, Prabir Saha, Prabir Saha and Sudha Jain, each with Rs 5 lakh.
These orders are a massive reversal of large-scale trading in the stock option segment observed by the Securities and Exchange Commission of India (SEBI), leading to the creation of manual sales.
Since then, SEBI has conducted a survey on the transaction activity of certain entities on BSE from April 2014 to September 2015.
According to SEBI, a reversal transaction is a transaction in which an entity reverses its buying and selling positions in a contract, and then sells or buys the position with the same counterparty.
The regulator said in the order that reversed transactions were allegedly non-vibrant because they lacked basic trading reasons, allegedly leading to false or misleading appearance of transactions, resulting in artificial sales.
“The transaction behavior of notification (eight entities) confirms that such transactions are not normal, indicating that the transaction executed is not a real transaction, not a non-currency, creating the emergence of manual transaction volume in their respective contracts,” Sebi said.
Therefore, these eight entities violate the PFUTP (Prohibiting Fraud and Unfair Trade Practice) norms.
In another order Wednesday, regulators suspended the award of Sumit Kumar Waghmare’s registration certificate for six months to violate investment advisory rules.
The order is an inspection of Waghmare, a SEBI registered investment advisory service, which he provided between April 2020 and March 2021 after the regulator’s inspection of Waghmare, an investment advisor registered by SEBI.
