Sebi has introduced a 'Settlement Scheme' to provide a one-time settlement opportunity to the entities that have executed trade reversals in the stock options segment of BSE during the period from April 1, 2014 to September 30, 2015, against whom any proceedings are pending. Onetime settlement period shall commence on August 01, 2020 and end on October 31,2020.
Sebi has identified that out of 21,652 entities that executed trades on BSE Stock Options Segment, a total of 14,720 entities were involved in generation of artificial volume by executing non-genuine/reversal trades on the same day.
"An analysis of the stock options segment of Bombay Stock Exchange (BSE)for the period April 1, 2014 to September 30, 2015 was carried out. It was observed that there were several entities who consistently made significant losses, whereas there were others who consistently made significant profit by executing reversal trades in stock options on the BSE," said Sebi.
Out of the 14,720 entities involved in generation of artificial volumes by executing non-genuine/reversal trades, SEBI has initiated adjudication proceedings against 567 entities.
The market regulator has considered three objective parameters viz., artificial volume, number of non-genuine trades and number of contracts resulting in creation of artificial volume/ non-genuine trades to arrive at an Indicative Settlement Amount.
Further, a uniform consolidated Settlement factor of 0.55 in all cases wherein the entities had executed reversal trades, would be applicable while arriving at the Indicative Settlement Amounts.
"After the expiry of the Scheme, entities who do not avail the onetime settlement opportunity shall be liable for action as per section 15-I of the SEBI Act, 1992," said Sebi.