Mumbai, June 19: The Securities and Exchange Board of India today pulled up 15 brokers, including Indiabulls Securities, and 10 other entities for violating rules on future and options trading.

Indiabulls Securities and the others were directed to “cease and desist from indulging in futures and options contracts in violation of Sebi (stock brokers and sub-brokers) Rules and Regulations, 1992 till further orders.”

The entities to get the warning are Rakhi Trading, Kasam Holding, Tungarli Tradeplace, Manu Vyapar, Raj Corporation, TLB Securities, Amar Mukeshbhai Shah, Shah Chirag Kirtikumar, Amit Business and Suresh Bharrat.

The brokers in the line of fire are Kumar Share Brokers, CPR Capital Services, SMC Global Securities, Khandwala Integrated Financial Services, Shilpa Stock Brokers, Angel Capital & Debt Market, Vibrant Securities, Systematix Shares & Stock (India), Steel City Securities, Ashika Stock Broking, Prashant Jayantilal Patel, Indiabulls Securities, PSJ Securities, Pratibhuti Vinihit and Manu Stock Broking.

These parties undertook “non-genuine trade transactions” on the National Stock Exchange between January and March this year.

The entities were booking profits or losses through some manipulative practices.

The brokers were buying and selling almost equal quantities of contracts within the day and in a synchronised way.

A reversal of trade was being done either for the entire quantity of the contract or substantially the same quantity with the same opposite party.

Therefore, where a buy transaction has been initially entered into by a broker for a particular client for a specific quantity, there was a corresponding sale transaction which took place during the day for the same quantity among the same brokers and clients.

“The findings of the preliminary examination have brought out that the F& segment is awash with transactions undertaken by broker and clients which essentially are non-genuine. Such transactions were in the nature of fictitious transactions resulting in the creation of misleading appearance of trading in these options,” the market regulator said.

It is understood that this is for the first time that the regulator is passing an order in F& trading.

The directive is only in the nature of a warning, and the parties can continue with their operations.