Sebi slaps Rs 65 lakh fine on 13 firms for indulging in non-genuine trades

Capital markets regulator Sebi has imposed Rs 65 lakh fine on 13 entities for indulging in non-genuine trades in illiquid stock options segment on the BSE.

In 13 separate orders on Wednesday, the regulator slapped a fine of Rs 5 lakh each on Kalyan Devi Bothra, Kalpesh Udani HUF, Kallol Kutir Pvt Ltd, Jyotiben Prakashkumar Shah, Jyoti Patawari, Jyoti Kariwala, Jupiter Industries and Jugmug Sales Pvt Ltd.

The other entities to be fined by Sebi were Jitendra Rameshbhai Patel, Jugal Kishore Gupta, Kajal Agarwal, JIT Finance Pvt Ltd and Jayshriben Dhirendrakumar Maniar.

The order came after the regulator observed large-scale reversal trades in the illiquid stock options segment on the BSE, leading to artificial volumes on the exchange.

Further, the regulator conducted an investigation into the trading activities of certain entities engaged in the segment from April 2014 to September 2015.

The entities to be fined were among those who indulged in reversal trades, Sebi said.

Reversal trades are non-genuine as they are executed in the normal course of trading, leading to a false or misleading appearance in terms of generating artificial volumes, the regulator said.

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

In a separate order, Sebi levied a fine of Rs 5 lakh each on six individuals for manipulating share prices of Mega Nirman & Industries Ltd.

The six individuals are Roshanlal Daulatram Aggarwal, Hardasbhai Babubhai Patel, Vinitkumar Popatlal Parikh, Maulik Vinitkumar Parikh, Subhdraben Rameshchandra Shah and Nilesh Rameshchandra Shah.

Sebi had conducted an investigation in the scrip of Mega Nirman and Industries between August 2016 and March 2017.

In another order, the regulator imposed a fine of Rs 1 lakh on Utkarsh Small Finance Bank for flouting the regulatory norms.