GPSK Capital pays over Rs 1.74 crore to settle case with Sebi
NEW DELHI: GPSK Capital Pvt Ltd has paid over Rs 1.74 crore to settle a case with regulator Sebi pertaining to alleged fraudulent trading in the stock options segment at the BSE.
The regulator observed that non-genuine trades in the segment resulted in the creation of artificial volume to the tune of over 54 per cent of the total market volume in the stock options segment.
Such large scale reversal of trades in stock options lead to the creation of artificial volume at the BSE.
GPSK Capital was one of the various entities which indulged in the execution of reversal trades in the segment during the investigation period.
Such trades were observed to be non-genuine in nature and created a false or misleading appearance of trading in terms of artificial volumes in stock options and therefore were alleged to be manipulative, deceptive in nature.
Pending the adjudication proceedings, the firm proposed to settle the instant proceedings initiated against it, without admitting or denying the guilt.
The high-powered advisory committee, after considering the facts and circumstances of the case, recommended that the case may be settled on the payment of the settlement amount of Rs 1,74,25,000.
"It is hereby ordered that this settlement order disposes of the aforesaid adjudication proceedings initiated against the applicant, GPSK Capital Pvt Ltd," Sebi said.
Through two separate orders, the regulator has levied a fine of Rs 5 lakh each on two individuals for fraudulent trading in the stock options segment at the BSE.
They have been penalised for violation of the Prohibition of Fraudulent and Unfair Trade Practices norms.