Sebi slaps fine of Rs 1.1 cr on 22 entities in illiquid stock options case

Capital markets regulator Sebi has imposed total penalties of Rs 1.1 crore on 22 entities, including individuals, for indulging in non-genuine trades in illiquid stock options at BSE.

In 22 separate orders, the regulator levied a fine of Rs 5 lakh each on these entities.

The Securities and Exchange Board of India (Sebi) observed large scale reversal of trades in stock options segment of BSE. It noted that such large-scale reversal of trades in stock options lead to creation of artificial volume at BSE.

In view of the same, the regulator conducted an investigation into the trading activities of certain entities in illiquid stock options at BSE for the period April 2014 to September 2015.

Pursuant to investigation, it was observed that over 2.91 lakh trades comprising substantial 81.38 per cent of all the trades executed in stock options segment of BSE during the investigation period were non genuine trades.

The non-genuine trades resulted into creation of artificial volume to the tune of 826.21 crore units or 54.68 per cent of the total market volume in stock options segment of BSE.

It was observed that these 22 entities were among the various entities which indulged in execution of reversal trades in stock options segment of BSE.

The entities that have been penalised are -- Beena Khandelwal, Ankit Lalitkumar Sodhani, Abhishek Agarwal, Abhinav Singh, Abhirup Dutta, Keshav Khandelwal, Ankit Kumar Jain, Abhijeet Suresh Bora HUF, Anjana S Goel, Ankita Singh, Rajendra Kumar Sethia and Rajendra Kumar Sethia HUF.

In addition, Begani Motilal, Nikita Tolani, Shivshakti Vyapaar, Nileshkumar Muljibhai Kothari, Nikita Agarwal, Surrender Kumar Gupta Divyanshu Gupta HUF, Rajendra Prasad Rohit Kumar HUF, Lata Goyal Family Trust, Baid Mercantiles and Badal Mohanty have been penalised too.