sebi:ASK/AO-77/2014-15
Facts / Headnote
Penalty imposed on the Noticee for violation of PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
- s. 151
Regulations relied on
- SEBI (PFUTP) Regulations, 2003 — 3(a)
- SEBI (PFUTP) Regulations, 2003 — 3(b)
- SEBI (PFUTP) Regulations, 2003 — 3(c)
- SEBI (PFUTP) Regulations, 2003 — 3(d)
- SEBI (PFUTP) Regulations, 2003 — 4(1)
- SEBI (PFUTP) Regulations, 2003 — 4(2)(a)
Parties
- M/s Blue Peacock Securities Ltd.
Holding
The Noticee, M/s Blue Peacock Securities Ltd., was found to have violated Regulations 3(a), (b), (c), (d) and 4(1) and (2)(a) of the PFUTP Regulations by engaging in fraudulent and unfair trade practices including bait-and-switch manipulation and order book manipulation, and a penalty of ₹2,00,00,000 was imposed under Section 15HA of the SEBI Act, 1992.
Full text
Adjudication Order in respect of M/s Blue Peacock Securities Ltd. August 27, 2014 Page 2 of 23 gross in the respective scrips. On analyzing the noticee’s contribution to the market pending quantity it was observed that when major selling transactions were executed the noticee's concentration to market pending orders was significant on buy side. It was further noted during the investigation that the buy orders placed by the noticee (which were placed significantly below the market prices and subsequently deleted) were with fully disclosed quantities whereas the sell orders were placed at partially disclosed quantities.
Adjudication Order in respect of M/s Blue Peacock Securities Ltd. August 27, 2014 Page 3 of 23 5. It was alleged in the SCN that the noticee:- i. created a false impression of artificial demand in the scrips by placing buy orders with large quantities below the market price, ii. by selling the shares in the market at the time when its large buy orders at below the prevailing market price were pending and subsequently cancelling these buy orders prior to conducting majority of the buying activity, acted in fraudulent manner, iii. was involved in BAIT and SWITCH activity i.e. noticee entered buy/sell orders lower/higher than the market price, fully disclosed the orders but actually transacted on the opposite side in the market, across various scrips and for several days, and iv. manipulated the order book by giving false impression in the market about the demand and supply of various scrips during the investigation period and thereby misled the investors.
Adjudication Order in respect of M/s Blue Peacock Securities Ltd. August 27, 2014 Page 4 of 23 considering the market moves, (e)small tick profit /losses and (f) initiate open trades within a range to take advantage of the price fluctuations.
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Source: SecMarx — sebi:ASK/AO-77/2014-15. 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.