The orders got here after the Securities and Change Board of India (Sebi) noticed large-scale reversal of trades within the illiquid inventory choices section of BSE, resulting in the creation of synthetic quantity.
The orders got here after the Securities and Change Board of India (Sebi) noticed large-scale reversal of trades within the illiquid inventory choices section of BSE, resulting in the creation of synthetic quantity.
Thereafter, the markets watchdog performed an investigation into the buying and selling actions of sure entities in illiquid inventory choices on BSE for the interval April 2014 to September 2015.
Accordingly, these entities are to be fined who indulged in reversal trades, the regulator stated in eight separate orders.
Based on Sebi, reversal trades are the trades by which an entity reverses its purchase or promote positions in a contract with subsequent promote or purchase positions with the identical counterparty. The reversal trades are alleged to be non-genuine trades as they lack fundamental buying and selling rationale and allegedly result in a false or deceptive look of buying and selling resulting in the technology of synthetic quantity. In view of the identical, such reversal trades are alleged to be misleading and manipulative in nature, it stated.
On Thursday, Sebi slapped a penalty of Rs 5 lakh every on Mamta Bhiwaniwala, Babulal Ramanlal Shah HUF, Subhas Chandra Agarwala, Intensify Tradecom Pvt Ltd and Poonam Charan Gupta for indulging in non-genuine trades within the illiquid inventory choices section on the BSE.
