Sebi slaps Rs 21.8 lakh fine on company for fraudulent trading activities

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Sebi slaps Rs 21.8 lakh fine on company for fraudulent trading activities


Sebi on Thursday slapped a fine of Rs 21.8 lakh on Sanjivani Multivit Herbal Products Ltd for indulging in fraudulent trading activities in the illiquid stock options segment on the BSE.

After observing large-scale reversal of trades in the illiquid stock options segment, Sebi conducted a probe between April 2014 and September 2015.

It was observed that Sanjivani (noticee) was one of the various entities which indulged in execution of reversal trades in the stock options segment during the investigation period.

Further, the regulator noted that the noticee had executed non-genuine trades in 148 contracts, wherein the percentage of non-genuine trades of entity in stock options contracts to total trades in the contracts were in the range of 8 per cent to 100 per cent.

Out of the said 148 contracts, the trades of Sanjivani contributed to 100 per cent of artificial volume in 30 contracts, Sebi said in an order.

According to the order, the trades executed by the noticee being non-genuine created an appearance of artificial trading volumes in respective contracts.

For violating the provisions of Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations, Sebi has fined the company which is now known as Sanjivani Corporate Park Developers Ltd.

While imposing the penalty, Sebi said the noticee had entered into 363 non-genuine transactions in 148 stock option contracts which demonstrates the repetitive nature of the default on its part.

According to an order passed on Wednesday, the watchdog imposed a fine of Rs 5 lakh on Rohan Finance & Securities Ltd for indulging in fraudulent trading in the illiquid stock options segment on the BSE.





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