sebi:EAD-6/PM-AB/75/2018-19
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Facts / Headnote
Penalty imposed on the Noticee for violation of PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
Regulations
- Reg. 3
- Reg. 2(1)(c)
- Reg. 4(1)
- Reg. 3(a)
- Reg. 4(2)(a)
- Reg. 2(1)(c)(2)
- Reg. 2(1)(c)(7)
- Reg. 2(1)(c)(8)
Parties
- Noticee (entity name not specified in text; PAN entity referred to as 'stupl_2000')
Holding
The Noticee violated Regulations 3(a), 4(1) and 4(2)(a) of the PFUTP Regulations by executing non-genuine reversal trades in illiquid stock options contracts on BSE, and a penalty of Rs. 1,15,00,000/- was imposed under Section 15HA of the SEBI Act.
Full text
Adjudication Order in the matter of dealing in Illiquid Stock Options at the BSE Page 2 of 30 that the Noticee had violated Regulation 3(a), (b), (c), (d) and Regulation 4(1), 4(2) (a) of the SEBI (Prohibition of Fraudulent and Unfair Trading Practices related to Securities Markets) Regulations, 2003 (hereinafter be referred to as, the “PFUTP Regulations”).
Adjudication Order in the matter of dealing in Illiquid Stock Options at the BSE Page 3 of 30 c) The trades entered by the Noticee were reversed on the same day with same counterparties at a substantial price difference without any basis for significant change in the contract price which indicates that these trades are artificial and are non-genuine in nature. d) A summary of dealings of the Noticee in the 561 Stock Options contracts in which the Noticee executed non-genuine reversal trades during the Investigation Period are as under: Table 1: Summary of trading of the Noticee in Illiquid Stock Options on BSE 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 Artificial trades of the Noticee in the contract to Total trades in the contract % of Artificial Volume generated by Noticee in the contract to Total Volume in the Contract 1 ADEL15MAR600.00CEW3 25.00 1008000 39.87 1008000 45% 68% 2 ADEL15MAR660.00CEW1 35.21 450500 59.68 402500 30% 24% 3 ADEL15MAR660.00PE 40.50 513500 69.98 513500 100% 100% 4 ADEL15MAR680.00CEW1 21.88 275500 44.85 275000 10% 8% 5 ADEL15MAR680.00PEW2 24.92 550000 41.50 550000 64% 60% 6 ADEL15MAR700.00CEW1 4.56 143500 22.69 158000 21% 27% 7 ADEL15MAR700.00PEW2 31.50 500000 58.83 500000 30% 39% 8 ADEL15MAR720.00PEW2 42.50 650000 64.16 650000 100% 100% 9 ADPW15JAN36.00CEW4 10.52 160000 14.95 160000 100% 100% 10 ALBK15APR85.00CEW1 10.63 314000 17.22 314000 64% 66% 11 ALBK15FEB10
Adjudication Order in the matter of dealing in Illiquid Stock Options at the BSE Page 4 of 30 18 ALBK15FEB90.00CEW3 11.40 150000 23.26 150000 89% 73% 19 ALBK15JAN100.00CE 16.05 150000 25.91 150000 100% 100% 20 ALBK15JAN105.00CE 12.95 102000 22.75 102000 100% 100% 21 ALBK15JAN110.00CE 10.00 44000 16.90 44000 100% 100% 22 ALBK15JAN115.00CE 6.90 60000 12.13 60000 58% 51% 23 ALBK15MAR115.00PE 10.08 284000 17.95 284000 100% 100% 24 ALBK15MAR120.00PEW3 6.50 92000 13.22 92000 29% 26% 25 ALBK15MAR85.00CEW1 15.40 112000 25.20 112000 28% 28% 26 ALBK15MAR90.00CEW1 12.40 148000 22.91 148000 55% 44% 27 ALBK15MAR95.00CEW3 11.13 98000 19.70 98000 67% 83% 28 AMBC15APR230.00CEW1 20.96 399000 26.28 399000 29% 27% 29 AMBC15FEB220.00CEW1 16.84 321000 29.73 321000 93% 100% 30 AMBC15FEB220.00CEW2 16.80 126000 27.74 126000 100% 100% 31 AMBC15FEB225.00CEW1 16.04 300000 28.97 250000 100% 91% 32 AMBC15FEB235.00CEW2 9.00 115000 15.91 115000 100% 100% 33 AMBC15FEB245.00CE 11.46 180000 23.20 180000 56% 47% 34 AMBC15FEB245.00CEW2 3.80 82000 6.25 2000 100% 5% 35 AMBC15FEB245.00CEW3 9.00 128000 17.72 128000 100% 100% 36 AMBC15FEB250.00CEW3 9.50 150000 19.70 150000 100% 100% 37 AMBC15FEB280.00PE 19.69 100000 30.20 100000 100% 100% 38 AMBC15JAN215.00CEW3 7.90 110000 17.76 110000 100% 100% 39 AMBC15JAN220.00CE 19.15 101000 31.30 101000 100% 100% 40 AMBC15JUL260.00PEW2 18.35 42000 12.50 42000 100% 100% 41 AMBC15JUL290.00PEW4 38.17 327000 26.02 327000 100% 100% 42 AMBC15MAR230.00CE 15.50 352000 25.02 352000 78%
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Source: SecMarx — sebi:EAD-6/PM-AB/75/2018-19. 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.