sebi:AO/SBM/EAD-1/07/2019
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Penalty imposed on the Noticee
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
Parties
- M/s Annex Tradelinks Private Limited (now known as Sunnyside Trading Private Limited)
Holding
The Adjudicating Officer held that the Noticee violated Regulations 3(a), 4(1) and 4(2)(a) of the PFUTP Regulations by executing reversal/non-genuine trades in illiquid Stock Option contracts at BSE, and imposed a penalty of Rs 8,00,000/- under Section 15HA of the SEBI Act.
Full text
Page 2 of 17 2. It was observed during the course of investigation that a total of 2,91,643 trades comprising 81.38% of all the trades executed in the Stock Options Segment at BSE during the investigation period were trades which involved reversal of buy and sell positions by the clients and counterparties in a contract. It was also observed that the aforesaid trades resulted into creation of artificial volume to the tune of 826.21 crore units or 54.68% of the total market volume in the Stock Options segment of BSE during the investigation period. In view of the large scale reversal of trades that were observed in the illiquid Stock Options segment at BSE, it is alleged that these trades were non-genuine in nature.
Page 3 of 17 APPOINTMENT OF ADJUDICATING OFFICER 4. The undersigned was appointed as the Adjudicating Officer, vide Order dated May 29, 2018 under Section 19 read with Section 15-I of the SEBI Act read with Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Adjudication Rules’) to inquire into and adjudge under the provisions of section 15HA of the SEBI Act for the aforementioned alleged violation of the provisions of law by the Noticee. SHOW CAUSE NOTICE, HEARING AND REPLY
Page 4 of 17 Table 2– Summary of dealings of Noticee in contracts wherein it executed non genuine trades S. No. Contract Name Avg. Buy Rate (Rs.) Total Buy Volume (no. of units) Avg. Sell Rate (Rs.) Total Sell Volume (no. of units) % of Non Genuine trades of Noticee in the contract to Noticee’s Total trades in the Contract % of Non Genuine trades of Noticee in the contract to Total trades in the Contract % of Artificial Volume generated by Noticee in the contract to Noticee’s Total Volume in the Contract % of Artificial Volume generated by Noticee in the contract to Total Volume in the Contract 1 ADPW15JUN24.00CEW2 10.00 128000 6.00 128000 100% 25% 100% 24% 2 ANBK15JUN60.00CEW2 12.53 232000 7.83 232000 100% 50% 100% 49% 3 ANBK15JUN65.00CEW2 6.90 144000 3.40 144000 100% 50% 100% 68% 4 ANBK15JUN75.00PEW2 8.00 108000 5.20 108000 100% 100% 100% 100% 5 DISH15JUN120.00PEW3 22.80 100000 15.30 100000 100% 50% 100% 41% 6 GMRI15JUN10.00CEW1 4.20 651283 2.84 651283 100% 60% 100% 61% 7 GMRI15JUN10.00CEW2 3.00 82557 1.80 82557 100% 100% 100% 100% 8 GMRI15JUN16.00PEW2 3.25 403612 1.85 403612 100% 60% 100% 65% 9 GMRI15JUN20.00PEW1 5.70 91730 4.60 91730 100% 20% 100% 12% 10 GMRI15JUN8.00CEW1 6.20 91730 4.10 91730 100% 50% 100% 33% 11 IBRL15JUN35.00CEW2 16.80 84000 9.80 84000 100% 100% 100% 100% 12 IDBI15JUN55.00CEW2 7.50 80000 4.35 80000 100% 40% 100% 31% 13 IFCI15JUN20.00CEW2 5.08 312000 3.28 312000 100% 33% 100% 33% 14 IFCI15JUN22.00CEW2 3.30 176000 2.20 176000 100% 33% 100% 43% 15 IFCI15J
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:AO/SBM/EAD-1/07/2019. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.