Sebi on Thursday levied fines totalling Rs 15 lakh on three entities for indulging in non-genuine trades in the illiquid stock options segment on the BSE. In three separate orders, the markets watchdog imposed a penalty of Rs 5 lakh each on Brindawan Pandey, Gothi HUF Shavji Raja and Saurabh Khetan.
The orders came after the Securities and Exchange Board of India (Sebi) observed a large-scale reversal of trades in the stock options segment of BSE. The regulator observed that such large-scale reversal of trades in stock options leads to the creation of artificial volume at BSE.
Thereafter, Sebi conducted an investigation into the trading activities of certain entities in illiquid stock options at BSE for the period April 2014 to September 2015.
The entities to be fined were among those who indulged in reversal trades, Sebi said in the three separate orders.
In another order passed on Thursday, the markets watchdog imposed a fine of Rs 5 lakh on Rudra Shares & Stock Brokers Ltd, a Sebi-registered stock broker, for violating the regulatory norms.
The order came after Sebi, NSE, Multi Commodity Exchange of India and National Commodity & Derivatives Exchange had conducted an on-site inspection of books of accounts and other documents of Rudra Shares & Stock Brokers, to look into various compliance requirements adhered with respect to stock brokers rules.
The inspection was conducted for the period from April 2022 to June 2023. Thereafter, Sebi initiated the adjudication proceedings against the brokerage firm.
Sebi also slapped a penalty of Rs 7 lakh on an individual for flouting research analyst rules and other regulatory norms.
The individual (Arun N), a Sebi-registered research analyst, has to pay the fine within 45 days, the Sebi said.
The order came after Sebi conducted an inspection into various compliance requirements adhered to by the noticee (Arun) with respect to the provisions of RA (Research Analysts) rules.
The period covered in the inspection was from April 2022 to February 2024.
In its order, Sebi observed that the noticee (Arun N) was not conducting Know Your Customer (KYC) of his clients during the inspection period and was relying on the Gap-up website for the onboarding and KYC of the clients.
In four separate orders passed on Monday, Sebi slapped a penalty of Rs 5 lakh each on Sumita Khare, Kamaljeet Singh, Bandana Sinha (Vandana Kishor) and Gita Devi Jalan for indulging in non-genuine trades in the illiquid stock options segment on the BSE.
