Illegal trades: Sebi gives tax dept, government information on 15,000 entities
NEW DELHI: Continuing efforts to crack down on illegal trading activities, SEBI has shared its findings on nearly 15,000 entities that have indulged in non-genuine trades through illiquid stock options with the income tax (I-T) department and the ministry of corporate affairs, according to a senior official.
The markets regulator came across violations by 14,720 entities while it was probing 59 entities in a case related to alleged trading irregularities in the stock options segment of the BSE. The entities were probed to check whether they violated norms pertaining to fraudulent trade activities during April 1, 2014 to March 31, 2015. Later, the scope of investigation was expanded to cover all the entities that had indulged in executing reversal trades in the BSE’s stock options segment and the time period was also extended to September 30, 2015.
The findings of the probe, relating to profits and losses incurred by the 14,720 entities have also been shared with the Financial Intelligence Unit. The matter is likely to be discussed at SEBI’s board meeting scheduled for June 21. Adjudication proceedings have been initiated against 567 entities in the first phase, SEBI had said.