sebi:AO/SBM/EAD-1/10/2019
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Facts / Headnote
Penalty imposed on the Noticee under Section 15HA of the SEBI Act for violating Regulations 3(a), 4(1) and 4(2)(a) of the PFUTP Regulations
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15J
Regulations
- Reg. 4(1)
- Reg. 3(a)
Parties
- Arc Finance Ltd.
Holding
The Adjudicating Officer held that Arc Finance Ltd. violated Regulations 3(a), 4(1) and 4(2)(a) of the PFUTP Regulations by executing 77 non-genuine reversal trades in 11 illiquid Stock Option contracts at BSE, generating artificial volume of 41,01,000 units, and imposed a penalty under Section 15HA of the SEBI Act.
Full text
Page 1 of 17 BEFORE THE ADJUDICATING OFFICER SECURITIES AND EXCHANGE BOARD OF INDIA (ADJUDICATION ORDER NO: AO/SBM/EAD-1/10/2019) UNDER SECTION 15-I OF THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 READ WITH RULE 5 OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (PROCEDURE FOR HOLDING INQUIRY AND IMPOSING PENALTIES BY ADJUDICATING OFFICER) RULES, 1995. In respect of: Arc Finance Ltd. PAN: AACCA1941K 18, Rabindra Sarani, Poddar Court, Gate No. 4, 1st Floor, Kolkata-700001 In the matter of Dealing in illiquid stock options at BSE
Page 2 of 17 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 and were manipulative trades.
Page 3 of 17 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
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Source: SecMarx — sebi:AO/SBM/EAD-1/10/2019. 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.