sebi:EAD-7/BJD/BKM/2018-19/1625
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Facts / Headnote
Violation established; penalty of Rs 6,00,000 imposed under Section 15HA
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15I
- s. 15J
- s. 15I(1)
Regulations
- Reg. 3
- Reg. 4
- Reg. 2(1)(c)
- Reg. 3(a)
Parties
- Pressweld Vessels (P) Ltd
Holding
The Noticee violated Regulations 3(a), 3(b), 3(c), 3(d), 4(1) and 4(2)(a) of SEBI (PFUTP) Regulations, 2003 by executing non-genuine reversal trades in illiquid stock options creating artificial volume, and is liable to monetary penalty under Section 15HA of SEBI Act, 1992, quantified at Rs 6,00,000.
Full text
Adjudication Order in respect of Pressweld Vessels (P) Ltd Page 2 of 22 the Noticee during the investigation period and the allegations against him for execution of non-genuine trades.
Adjudication Order in respect of Pressweld Vessels (P) Ltd Page 3 of 22 Sl. No Contract Name Avg. Buy Rate (`) Total Buy Volume (no. of units) Avg. Sell Rate (`) Total Sell Volume (no. of units) Numb er of non genuin e trades execut ed by Entity in the Contra ct Total numb er of trades execu ted by the Entit y in the Contr act Total numb er of trades execu ted in the contr act % of Non Genuine trades of Noticee in the contract to Noticee’s Total trades in the Contract % of Non Genuine trades of Entity 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 19 RCOM15FEB70.00CE 3.05 128000 0.10 128000 2 2 34 100% 6% 100% 12% 20 RCOM15FEB80.00CE 3.10 390000 0.10 390000 3 3 12 100% 25% 100% 51% 21 RCOM15MAR85.00CE 2.95 174000 0.05 174000 8 8 14 100% 57% 100% 38% 22 RPOW15MAR60.00CE 2.08 232000 0.05 232000 4 4 31 100% 13% 100% 4% 23 RPOW15MAR70.00CEW1 2.78 508000 0.10 508000 6 6 22 100% 27% 100% 52% 24 SAIL15APR60.00PEW2 1.44 644000 0.05 644000 5 5 7 100% 71% 100% 97% 25 SYND15FEB95.00PE 2.79 450000 0.05 450000 4 4 11 100% 36% 100% 63% 26 UCOB15FEB75.00CE 2.30 108000 0.08 108000 3 3 8 100% 38% 100% 30% 27 UCOB15FEB80.00CE 2.31 600000 0.05 600000 4 4 25 100% 16% 100% 21% 28 UCOB15FEB85.00CE 1.49 136000 0.10 136000 3 3 9 100% 33% 100% 25% 29 UCOB15FEB90.00CE 2.23 500000 0.05 500000 4 4 4 100% 100% 10
Adjudication Order in respect of Pressweld Vessels (P) Ltd Page 4 of 22 7. In view of the foregoing, it was alleged that the Noticee, indulged in execution of reversal of trades in Stock Options with same entities on the same day. Such trades are non-genuine in nature and have created false or misleading appearance of trading in terms of artificial volumes in stock options and therefore alleged to be manipulative, deceptive in nature. Thus, it was alleged that the Noticee had violated the provisions of Regulation 3(a), (b), (c), (d), 4(1) and 4(2) (a) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003.
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Source: SecMarx — sebi:EAD-7/BJD/BKM/2018-19/1625. 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.