INSUBCONTINENT EXCLUSIVE:
New Delhi: Sebi Tuesday slapped a penalty of Rs 25 lakh on Kolkata-based R S Ispat for indulging in non-genuine trade which created a false
appearance of trading in illiquid stock options segment of BSE.
In April, Sebi had announced to take action in a phased manner against
14,720 entities for 'non-genuine trades' in illiquid stock option segment.
The markets regulator said adjudication proceedings have been
initiated against 567 entities involved in such trades in the first phase.
In an order, Sebi fined the firm for violating PFUTP (Prohibition
of Fraudulent and Unfair Trade Practices) Regulations.
The Securities and Exchange Board of India (Sebi) conducted an investigation into the
trading activity in illiquid stock options on BSE between April 2014 to September 2015 after observing large scale reversal of trades in the
stock options.
The probe found that R S Ispat was one of the various entities indulged in execution of non-genuine trades in stock options
during the examination period.
The company "by indulging in execution of reversal trades in stock options with same entities on the same
day, had created artificial volume leading to false and misleading appearance of tradingtherefore violating PFUTP regulations
Accordingly noticee (R S Ispat) is liable for monetary penalty," the regulator said and imposed fine on it.
