The Hindu Business Line : Indiabulls Sec fined for trade violation in F&O

Mumbai, Feb. 25 SEBI on Wednesday imposed a penalty of Rs 15 lakh on Indiabulls Securities Ltd for executing non-genuine trades in the futures and options segment of the securities market.

Examining the trading data of the F&O segment of the NSE from January to March 2007, SEBI observed that Indiabulls Securities was buying and selling almost equal quantities of contracts during the day which were synchronised. “Non-genuine trades in the F&O segment had the effect of creating a false or misleading appearance of trading in the option market,” the SEBI order said.

Questioning the genuineness of the trades, the market monitor’s adjudicating authority said the reversal of trades took place in a matter of just a few seconds/minutes, showing significant differences between the buy and sell trade prices, without there being any significant change in the price of the underlying shares.

Indiabulls Securities was found guilty of violating SEBI’s Fraudulent and Unfair Trade Practices Regulations, and the code of conduct applicable for the broking firms under Stock-Brokers Regulations, 1992, SEBI said.

On the BSE on Wednesday, Indiabulls Securities ended at Rs 21.55, losing 2.05 per cent over the previous close of Rs 22.

More Stories on : Economic Offences | Derivatives Markets | Financial Services

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
MRO Tek buy-back

Cambridge Solutions to stay listed in India

ELSS turn unattractive in Dec, Jan

Fund houses cautious on portfolio changes

Shipping stocks fail to take cues from Baltic Dry Index

Won’t sell Satyam stake: L&T

DLF March in sharp discount

Tata Capital NCD subscribed six times

RCom planning NCD issue

Tata Chemicals (Rs 130.70): Sell

Day Trading Guide

Indiabulls Sec fined for trade violation in F&O

Anticipatory bail plea of Kampani, others rejected