Markets regulator Sebi has slapped a penalty of Rs 5 lakh each on two entities for engaging in non-genuine transactions, which created a misleading impression of trading in illiquid stock options segment. Those facing penalties are -- Kalpesh Vinubhai Gajjar and Ketan Ramanlal Shah HUF.

The Securities and Exchange Board of India (Sebi) conducted an investigation into the trading activity in illiquid stock options at BSE between April 2014 to September 2015 after observing large scale reversal of trades in the stock options segment of the BSE.