Market regulator Securities and Exchange Board of India (SEBI), has imposed a fine of over Rs 39 lakh on five entities for indulging in fraudulent trades in the illiquid stock options segment of Bombay Stock Exchange (BSE).
The regulator had conducted an investigation between April 2004 and September 2015, after it observed large scale reversal of trades in stock options segment of the bourse.
The probe found that the five were among the various organisations that had executed non-genuine trades in the stock options segment by reversing trades with same entities on the same day with wide variation of price.
Straight Line Food Products and Winsher Commercial were fined Rs 5 lakh each, Shri Radha Raman Alloys and Vindus Holdings were levied a penalty of Rs 9 lakh each while Rs 11.20 lakh was imposed on Subhlabh Fiscal Services, totalling Rs 39.20 lakh.
“The non-genuine and deceptive transactions of these entities are, prima-facie, covered under the definition of fraud and are prohibited under PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations, thereby making them liable for monetary penalty,” SEBI noted.
The regulator in a separate order has also imposed a fine of Rs 10 lakh on seven promoters of Brand Realty Services for delay in making open offer to acquire shares in the company.
The delay in making open offer by the promoter group was violative of SAST (Substantial Acquisition of Shares and Takeovers) norms, SEBI said.