Sebi fines seven organizations Rs 35 lakh for engaging in fraudulent activities.

On Tuesday, capital markets watchdog Sebi fined seven organizations a total of Rs 35 lakh for engaging in fraudulent trading in the BSE's illiquid stock options market. The markets watchdog fined Shyamal Kishore Agarwal, Pankaj Kumar Agarwal, Vijay Kumar Chaudhary, Raj Kumar Nemani, Nina Nag, Subhranshu Roy HUF, and Ratan Lal Sipani HUF Rs 5 lakh each in seven different orders. Trades in which an entity reverses its buy or sell positions in a contract with subsequent sell or purchase positions with the same counterparty are known as reversal trades, according to Sebi. According to the regulator's directive, the reverse trades are purportedly not genuine since they lack fundamental trading logic and give the impression that trading is taking place, which creates artificial volume.