The News Scroll 16 July 2019  Last Updated at 2:08 pm | Source: PTI

Sebi fines GKS Properties Rs 5 lakh for fraudulent trade

Sebi fines GKS Properties Rs 5 lakh for fraudulent trade
New Delhi, Jul 16 (PTI) Markets regulator Sebi levied a fine of Rs 5 lakh on GKS Properties for executing non-genuine trades in the illiquid stock options segment at BSE.

The ruling follows an investigation conducted by Sebi in the stock options segment of the bourse between April 2014 and September 2015.

During investigation, Sebi noted that 81.38 per cent of all trades executed in the segment at BSE were the ones which involved reversal of buy and sell positions by the clients and counterparties in a contract on the same day, thereby creating artificial volume in the stock options segment.

GKS Properties was one such entity which executed reversal trades, Sebi said in an order dated July 15.

"The non-genuine and deceptive transactions of the Noticee are covered under the definition of ''fraud''," it added.

The firm by indulging in manipulative trade practices violated the provisions of Prohibition of Fraudulent and Unfair Trade Practices regulations.

"Such persistent trading pattern of the Noticee, which was fraudulent and deceptive, affects the normal price discovery mechanism in the securities market.

"People who indulge in manipulative, fraudulent and deceptive transaction, or abet the carrying out of such transaction ...should be suitably penalised for such acts of omissions and commissions," Sebi said.

The regulator thus slapped a fine of Rs 5 lakh on GKS Properties. PTI


Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI
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