Now Reading: Sebi fines late trader Rs 20 lakh for BSE illiquid options
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Sebi fines late trader Rs 20 lakh for BSE illiquid options
Markets regulator Sebi has imposed a penalty of Rs 20 lakh on the estate of late Bhagwati Prasad Deora for fraudulent trading in illiquid stock options on the BSE. The order, passed…
Markets regulator Sebi has imposed a penalty of Rs 20 lakh on the estate of late Bhagwati Prasad Deora for fraudulent trading in illiquid stock options on the BSE. The order, passed on August 25, 2026, found that Deora engaged in reversal trades that created artificial volumes in the stock options segment.
The trades, executed between April 2014 and September 2015, involved non-genuine transactions where both buy and sell orders were entered by the same set of counterparties. Sebi's investigation identified 15 instances where Deora's trading accounts were used to execute such pre-arranged trades. The regulator said these trades violated the Prohibition of Fraudulent and Unfair Trade Practices regulations.
The penalty of Rs 20 lakh must be paid by the legal heirs of the deceased trader within 45 days of receiving the order. Failure to pay will lead to recovery proceedings under the Sebi Act, including attachment of assets and bank accounts.
Indian Opinion Analysis
The case is part of Sebi's long-running crackdown on the illiquid stock options scam on the BSE, where dozens of entities were found to have generated artificial volumes through synchronized trades. The regulator typically pursues recovery from the estate of a deceased noticee, as the liability attaches to the assets left behind. Similar penalties have been levied against multiple individuals and firms for the same pattern of trades executed between 2014 and 2015. The next step for the heirs is to either pay the fine or appeal the order before the Securities Appellate Tribunal within 45 days.
Source: sebi.gov.in
This story was synthesised by AI from the source linked above.
