Sebi on Monday imposed a total penalty of Rs 12 lakh on two entities for executing non-genuine trades leading to creation of artificial volume in the illiquid stock options segment of BSE. Those facing penalties are Kashi Vishwanath Steels and one Kirti Ramji Kothari. The markets regulator conducted an investigation into the trading activities of certain entities in illiquid stock options on BSE from April 2014 to September 2015. In April, Sebi announced to take action in a phased manner against 14,720 entities for fraudulent trade in illiquid stock options segment and passed several orders in past few weeks against such entities. Following the probe, Sebi found that the reversal trades executed by the entities were not genuine and created misleading appearance of trading. In separate orders, Securities and Exchange Board of India (Sebi) said that by engaging in such trades, the entities violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms. Accordingly, a fine of Rs 6 lakh each was imposed on both the entities.