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The Tax Publishers SEBI--Settlement Scheme, 2020 One-time Settlement Scheme in Illiquid Stock Option Pragya Bhandari The learned author in this article makes the comprehensive study of a one-time Settlement Scheme issued by SEBI for the entities involved in trading in illiquid stock option segment at BSE. 1. Background The SEBI has introduced a new scheme vide public notice dated 27-7-2020, namely, Settlement Scheme, 2020 in terms of Regulation 26 of SEBI (Settlement Proceedings) Regulations, 2018. The scheme is issued in order to curb the market manipulators, where at various instances/cases, it was found that some particular entities are regularly involved in fake trading activities and manipulating own company prices and making losses which are listed on Bombay Stock Exchange (BSE). The trading pattern was found to be quite abnormal where these manipulators buy and sell same securities on same day or the next day. In pursuant to the report prepared by SEBI in consultation with BSE, a total of 14,720 entities were involved in generation of artificial volume by executing non-genuine/reversal trades at stock option segment of BSE. SEBI has initiated adjudication proceedings against 567 entities as of now. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

SEBI--Settlement Scheme, 2020

One-time Settlement Scheme in Illiquid Stock Option

Pragya Bhandari

The learned author in this article makes the comprehensive study of a one-time Settlement Scheme issued by SEBI for the entities involved in trading in illiquid stock option segment at BSE.

1. Background

The SEBI has introduced a new scheme vide public notice dated 27-7-2020, namely, Settlement Scheme, 2020 in terms of Regulation 26 of SEBI (Settlement Proceedings) Regulations, 2018. The scheme is issued in order to curb the market manipulators, where at various instances/cases, it was found that some particular entities are regularly involved in fake trading activities and manipulating own company prices and making losses which are listed on Bombay Stock Exchange (BSE). The trading pattern was found to be quite abnormal where these manipulators buy and sell same securities on same day or the next day. In pursuant to the report prepared by SEBI in consultation with BSE, a total of 14,720 entities were involved in generation of artificial volume by executing non-genuine/reversal trades at stock option segment of BSE. SEBI has initiated adjudication proceedings against 567 entities as of now.