sebi:EAD-6/PM-AB/88/2018-19
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Facts / Headnote
Violation of Regulations 3(a), 4(1) and 4(2)(a) established; penalty of Rs. 5,00,000 imposed under Section 15HA
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
Regulations
- Reg. 3
- Reg. 2(1)(c)
- Reg. 3(a)
- Reg. 4(2)(a)
- Reg. 2(1)(c)(2)
- Reg. 2(1)(c)(7)
- Reg. 2(1)(c)(8)
Holding
The Noticee's 49 reversal trades in 21 illiquid stock option contracts were non-genuine and created a false appearance of trading, violating Regulations 3(a), 4(1) and 4(2)(a) of the PFUTP Regulations, warranting a monetary penalty of Rs. 5,00,000 under Section 15HA of the SEBI Act.
Full text
Adjudication Order in the matter of dealing in Illiquid Stock Options at the BSE Page2 of 15 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 Page3 of 15 d) A summary of dealings of the Noticee in the 21 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 BHFL15SEP1020.00PEW3 13.50 17000 57.65 17000 100% 100% 2 BOBL15AUG190.00CEW3 2.70 22000 23.15 22000 50% 69% 3 BPCL15AUG940.00PEW2 20.45 14500 72.20 14500 25% 67% 4 COAL15AUG380.00PEW3 5.75 20000 18.85 20000 44% 24% 5 DIVI15AUG1950.00CEW2 47.70 9875 155.00 9875 100% 100% 6 DLFL15AUG110.00CEW3 6.05 138000 13.30 138000 33% 52% 7 HNDL15AUG80.00CEW1 17.70 204000 30.60 204000 100% 100% 8 HNZL15AUG150.00PEW3 3.85 134000 9.85 134000 50% 83% 9 HPCL15AUG960.00PEW2 12.90 32500 78.00 32500 25% 71% 10 JAIA15AUG14.00CEW1 0.05 256000 1.60 256000 25% 43% 11 JAIA15AUG14.00PEW3 3.80 8000 5.10 8000 100% 100% 12 JISL15AUG80.00PEW2 5.50 144000 8.45 144000 14% 31% 13 LNTF15AUG35.00CEW1 21.65 136000 36.35 136000 100% 100% 14 LNTF15AUG95.00PEW1 14.55 56000 24.05 56000 6% 11% 15 PAGE15AUG14600.00CEW2 70.00 3000 242.00 3000 100% 100% 16 PNBK15AUG135.00CEW1 9.7
Adjudication Order in the matter of dealing in Illiquid Stock Options at the BSE Page4 of 15 e) By indulging in execution of aforesaid non-genuine reversal trades, the Noticee has violated Regulations 3(a),(b),(c),(d) and 4(1), 4(2)(a) of the PFUTP Regulations, text of which is reproduced as under: “SEBI (Prohibition of Fraudulent and Unfair Trading Practices Related to Securities Markets) Regulations, 2003
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Source: SecMarx — sebi:EAD-6/PM-AB/88/2018-19. 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.