Regulator Sebi on Wednesday imposed a fine of Rs 5 lakh on an individual for carrying out manipulative trades in the illiquid stock options segment on the BSE.
The Securities and Exchange Board of India (Sebi) after observing large scale reversal of trades in stock options segment of the bourse conducted an investigation between April 2014 and September 2015.
Pursuant to an investigation, it was found that 81.38 per cent of all the trades executed in the segment were non-genuine in nature.
According to Sebi, Ram Ratan Chowdhary was among the individuals that had indulged in execution of reversal trades in the stock options segment.
"The trading behaviour of the noticee (Chowdhary) confirms that such trades were not normal and wide variation in prices of the trades in the same contract in a short time without any basis for such wide variation, all indicate that the trades executed by the noticee were not genuine trades," it added.
For violating norms by carrying out non-genuine trades, the regulator slapped a fine of Rs 5 lakh on him.