SEBI has imposed fines totaling ₹50 lakh on 10 entities for engaging in non-genuine trades in the illiquid stock options segment on the BSE. The regulator fined Sachin Jain HUF, Moti Lal Baid, Ajay Nopani, Diwakar Jha, Bagdevi Suppliers Pvt Ltd, Rita R Thakkar, Kala Suppliers Pvt Ltd, Megha Nibhwani, Sitaram Jayant, and Amit Shaw ₹5 lakh each for their involvement in the trades.
The penalties were issued following SEBI’s observation of large-scale reversal of trades in the illiquid stock options segment of the BSE, resulting in the creation of artificial volume. An investigation into the trading activities of certain entities in illiquid stock options on the BSE from April 2014 to September 2015 was conducted by the markets watchdog.
Reversal trades, as defined by SEBI, are trades in which an entity reverses its buy or sell positions in a contract with subsequent sell or buy positions with the same counterparty. These trades are considered non-genuine as they lack a basic trading rationale and create a false or misleading appearance of trading, leading to the generation of artificial volume.
In a separate order, SEBI cancelled the registration certificate of Corporate Strategic Allianz Pvt Ltd for violating merchant banker norms. The decision came after an inspection of Corporate Strategic Allianz, a SEBI-registered merchant banker, for the period from April 2022 to September 2023.
The article was first published on March 22, 2025.
