SEBI, market regulator has imposed a penalty on three entities for fraudulent trading in BSE’s illiquid stock options, of Rs 15 lakh. The entities on which the fine of Rs 5 lakh each were imposed, are-
– Baba Commercial and Finvest Pvt Ltd
– Dewdrops Mercantiles Pvt Ltd
– Clan Laboratories Pvt Ltd
Securitie and Exchange Board of India ( Sebi) conducted a probe in the segment beacuse they observed large-scale reversal of trades , between April 2014 and September 2015. The investigation showed that 81 percent of the trade involves reversal buy and sell and the artificial volumes, by the clients and the counter parties.
The regulator also said that the trade carried out by these entities were non-genuine and was misleading the appearance of trading centres in the illiquid stock options contracts.