New Delhi:
Capital markets regulator Sebi on Tuesday slapped penalties totalling Rs 25 lakh on 5 entities for indulging in non-genuine trades within the illiquid inventory choices phase on BSE.
The regulator imposed a wonderful of Rs 5 lakh every on Chitrabai Vasantrao Nikam, Damayanti Jhunjhunwala, Nemichand Kasturchand Jain, Naresh Kumar Agarwal and Chandra Lakshmi Security Glass Ltd (CLSG).
Sebi had noticed giant scale reversal trades in illiquid inventory choices phase on BSE, resulting in synthetic volumes on the trade. The regulator performed an investigation into the buying and selling actions of sure entities engaged within the phase from April 2014 to September 2015.
The 5 entities which have been fined on Tuesday had been amongst those that indulged within the execution of reversal trades.
Reversal trades are alleged to be non-genuine in nature as they’re executed within the regular course of buying and selling, which ends up in a false or deceptive look of buying and selling when it comes to producing synthetic volumes, the regulator mentioned.
By indulging in these acts, the entities violated the PFUTP (Prohibition of Fraudulent and Unfair Commerce Practices) norms.
In a separate order, the regulator barred Uday Intellicall Pvt Ltd and its administrators from the securities marketplace for six months for offering unauthorised funding advisory companies.
They’ve additionally been requested to refund traders’ cash ‘collectively and severally’ collected by way of such companies inside three months.
Rajat Sarraf and Kalpana Jain had been the administrators of Uday Intellicall.
As per Sebi, Uday Intellicall was engaged in funding advisory companies with out holding the obligatory certificates of registration by the markets watchdog.
The regulator additionally famous that Sarraf and Jain being the administrators and shareholders of the agency had been additionally the beneficiaries of the unregistered funding advisory companies provided within the identify of the agency, thereby violating the provisions of Funding Advisers (IA) guidelines.
Uday Intellicall had acquired Rs 1.06 crore of their accounts from March 2018 until date by way of unregistered funding advisory companies, Sebi mentioned.
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