Mumbai: The Securities and Exchange Board of India (Sebi) has decided not to penalize self trades, reversing its earlier stand. The markets watchdog has also formulated a legal policy to dispose of the adjudication proceedings related to 100 showcause notices issued to market entities on self trades, two people aware of the issue said.
Orders that match each other but do not result in any change in ownership are called self trades. As many as 270,000 of an average of 12.2 million orders executed every day in the derivatives market are self trades, stock exchange data shows. Such trades typically take place when dealers from the same brokerage trade using the same client code.