Sebi slaps over Rs 14 lakh fine on entity for fraudulent trading activities

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NEW DELHI: Capital markets regulator Sebi on Wednesday imposed a penalty of Rs 14.10 lakh on Balaji Infrasolutions Pvt Ltd for indulging in fraudulent buying and selling in illiquid inventory choices phase on the BSE.

An investigation was performed by the regulator for the interval of April 1, 2014 to September 30, 2015 into the buying and selling actions of sure entities within the illiquid inventory choices phase on the trade.

Throughout that interval, Sebi noticed {that a} whole 2,91,643 trades comprising substantial 81.38 per cent of all of the trades executed within the inventory choices phase of the BSE have been non-genuine trades.

Balaji Infrasolutions was one of many entities which had indulged in creating synthetic quantity of 63,25,000 models by 172 non-genuine trades in 80 inventory choice contracts, as per the regulator.

In line with the order, Sebi mentioned this sample of trades continued for 13 days.

Due to this fact, the trades executed by the noticee have been non-genuine in nature and had created a deceptive look of buying and selling in illiquid inventory choice contracts, Sebi mentioned.

Additionally, such buying and selling sample of the noticee, which was fraudulent and misleading, impacts the traditional value discovery mechanism within the securities market, the regulator famous.

“Individuals who take pleasure in manipulative, fraudulent and misleading transaction, or abet the finishing up of such transaction that are fraudulent and misleading must be suitably penalised for such acts of omissions and commissions,” the watchdog mentioned in its order.

Due to this fact, the regulator penalised Balaji Infrasolutions Pvt Ltd for violating the provisions of PFUTP (Prohibition of Fraudulent and Unfair Commerce Practices) Rules.

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