<p class="title">Capital markets regulator Sebi on Thursday levied a penalty of over Rs 13.5 lakh on Anand Mining Corporation for indulging in fraudulent trading in the illiquid stock options segment on the BSE.</p>.<p class="bodytext">The market regulator conducted a probe in the stock options segment from April 2014 to September 2015 after it observed a large scale reversal of trades that led to the creation of artificial volume.</p>.<p class="bodytext">Sebi noted that Anand Mining Corporation was one of the several entities which indulged in the execution of non-genuine trades by executing reversal trades in the stock options segment.</p>.<p class="bodytext">Reversal trades are those trades in which an entity reverses its buy or sell positions in a contract with subsequent sell or buy position with the same counterparty during the same day.</p>.<p class="bodytext">"The consistent pattern of dealings by noticee only in such options contracts which are illiquid clearly demonstrates the manipulative intent to use stock exchange platform to carry out non-genuine trades," Sebi said.</p>.<p class="bodytext">It further added that "it cannot be ignored that synchronization of trades in a pre-determined manner had an adverse impact on the fairness, integrity and transparency in the securities market."</p>.<p class="bodytext">By doing so, the firm has violated the provisions of the Prohibition of Fraudulent and Unfair Trade Practices norms, the order noted.</p>.<p class="bodytext">In a separate order, Sebi imposed a fine of Rs 5 lakh on stockbroker Bhaijee Commodities Pvt Ltd for violating the regulator's circular that mandates strict segregation of clients' funds and securities from own funds and securities.</p>
<p class="title">Capital markets regulator Sebi on Thursday levied a penalty of over Rs 13.5 lakh on Anand Mining Corporation for indulging in fraudulent trading in the illiquid stock options segment on the BSE.</p>.<p class="bodytext">The market regulator conducted a probe in the stock options segment from April 2014 to September 2015 after it observed a large scale reversal of trades that led to the creation of artificial volume.</p>.<p class="bodytext">Sebi noted that Anand Mining Corporation was one of the several entities which indulged in the execution of non-genuine trades by executing reversal trades in the stock options segment.</p>.<p class="bodytext">Reversal trades are those trades in which an entity reverses its buy or sell positions in a contract with subsequent sell or buy position with the same counterparty during the same day.</p>.<p class="bodytext">"The consistent pattern of dealings by noticee only in such options contracts which are illiquid clearly demonstrates the manipulative intent to use stock exchange platform to carry out non-genuine trades," Sebi said.</p>.<p class="bodytext">It further added that "it cannot be ignored that synchronization of trades in a pre-determined manner had an adverse impact on the fairness, integrity and transparency in the securities market."</p>.<p class="bodytext">By doing so, the firm has violated the provisions of the Prohibition of Fraudulent and Unfair Trade Practices norms, the order noted.</p>.<p class="bodytext">In a separate order, Sebi imposed a fine of Rs 5 lakh on stockbroker Bhaijee Commodities Pvt Ltd for violating the regulator's circular that mandates strict segregation of clients' funds and securities from own funds and securities.</p>