Sebi imposes Rs 11.4 lakh fine on 2 entities for fraudulent trading in BSE's illiquid stock options

Markets regulator Sebi on Wednesday levied a total fine of Rs 11.4 lakh on two entities for indulging in fraudulent trading in illiquid stock options on the BSE.

In two separate orders, Sebi imposed a penalty of Rs 5 lakh and 6.4 lakh on Arindam Shekhar Garment and Anandi Bhupendrabhai Vekaria, respectively, after observing large scale reversal of trades in the illiquid stock options segment of the BSE.

By indulging in such activities, the entities violated provisions of the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.

The regulator also slapped a fine of Rs 3 lakh each on two entities for indulging in fraudulent practices and violating insider trading norms in the matter of InCap Financial Services Ltd.

Prem Agarwal and InCap Financial Services Ltd are the two entities which have been fined.

Sebi, in its investigation, found that the noticee Prem Agarwalhad circulated a message through short message service (SMS) giving price guidance for the shares of InCap Financial.

Agarwal planted false or misleading news by circulating SMS to create positive news, which induced fake purchase of securities. By doing so, he violated the PFUTP norms.

Besides, Sebi said InCap Financial failed to implement the Model Code of Conduct, and also failed to provide information with respect to non-implementation of the code of conduct.

By doing so, it violated PIT (Prohibition of Insider Trading) norms.