Sebi slaps Rs 11 lakh fine on B P Equities

Capital market regulator Sebi today slapped a fine of Rs 11 lakh on B P Equities Private Ltd for violating stock broker norms with respect to trading in shares of Ess Dee Aluminum Ltd (EAL).
A Securities and Exchange Board of India (Sebi) probe found that B P Equities had executed self trades that had resulted in false and misleading appearance of trading in shares of EAL.
"It can be concluded that the noticee has executed self trades on behalf of its client in such high volumes and the number of self trades from the same terminal is also very high which resulted in false and misleading appearance of trading thereby failed to adhere to the Code of Conduct prescribed for stock brokers," Sebi said in a ruling today.

Accordingly, Sebi has imposed "a penalty of Rs 11 lakh on the noticee...For failure to exercise due skill and care in terms of...Sebi (Stock Brokers and Sub Brokers) Regulations".
Sebi had conducted an investigation into the trading in the scrip of EAL during the period September 1, 2012 to June 30, 2013.
It was noted that the scrip of EAL rose from Rs 116.85 to a high of Rs 617 and closed at Rs 507.75 during the investigation period.