The Securities and Exchange Board of India (SEBI) imposed a total fine of Rs 29 lakh on four entities on the BSE for fraud and manipulation in the illiquid stock options segment. The capital markets regulator observed that such massive reversal of trading in stock options led to the creation of artificial volumes on the BSE.

York Financial Services Pvt Ltd has been fined Rs 5 lakh, Radha Mohan Purushottam Das Jewels Pvt Ltd Rs 16.5 lakh, AHK Developers Pvt Ltd and Kewal Chand Jain Rs 6 lakh each.

The regulator conducted an investigation from April 2014 to September 2015, and found that 81.38 percent of trades executed in stock options were non-genuine, leading to the creation of artificial volume. The regulator noted that four entities were among those who reversed trades. Such trades were non-genuine in nature and would create a false or misleading appearance of trading in terms of artificial quantities in stock options and were therefore manipulative and misleading. Sebi, in separate orders, said fraudulent trade practices by entities are violative of the provisions of the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) norms.

Separately, the regulator has imposed a total fine of Rs 20 lakh on Nirmal Kotecha in a case related to fraud and misappropriation of shares of Pyramid Samira Theater Ltd.

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