sebi:EAD-7/BJD/BKM/2018-19/1825

SEBI · SEBI · B J Dilip, Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

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

• PRM Power and Projects (P) Ltd

Holding

The Noticee, PRM Power and Projects (P) Ltd, was found to have violated Regulations 3(a), 3(b), 3(c), 3(d), 4(1) and 4(2)(a) of the PFUTP Regulations by executing non-genuine reversal trades in the Stock Options Segment of BSE that created a false and misleading appearance of trading and generated artificial volume.

Full text

Adjudication Order in respect of PRM Power and Projects (P) Ltd Page 2 of 26 3. It was observed that the said non- genuine trades were not restricted to any specific contract or between any specific set of entities. It was observed that PRM Power & Projects Pvt. Ltd (hereinafter referred to as “Noticee”) was one of the various entities which were indulged in execution of non-genuine trades in Stock Options Segment of BSE during the investigation period. The following points narrate the dealings of the Noticee during the investigation period and the allegations against him for execution of non-genuine trades.

Adjudication Order in respect of PRM Power and Projects (P) Ltd Page 3 of 26 S. No Contract Name Avg. Buy Rate (Rs.) Total Buy Volume (no. of units) Avg. Sell Rate (Rs.) 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 6 BPCL15SEP820.00PE 8.00 27000 1.25 27000 2 2 8 100% 25% 100% 25% 7 BPCL15SEP880.00PE 12.00 25000 4.00 25000 2 2 4 100% 50% 100% 36% 8 BPCL15SEP900.00PE 19.00 21000 7.00 21000 2 2 2 100% 100% 100% 100% 9 CEAT15AUG760.00PE 7.00 20000 4.50 20000 2 2 6 100% 33% 100% 25% 10 CEAT15SEP700.00PE 12.00 25000 4.00 25000 2 2 2 100% 100% 100% 100% 11 CEAT15SEP720.00PE 16.00 25000 8.00 25000 2 2 6 100% 33% 100% 30% 12 CEAT15SEP760.00PE 13.70 39000 4.25 39000 2 2 8 100% 25% 100% 39% 13 CESC15SEP500.00PE 5.95 75000 0.60 75000 2 2 8 100% 25% 100% 35% 14 CESC15SEP540.00PE 11.00 50000 1.00 50000 2 2 8 100% 25% 100% 36% 15 CIPL15AUG700.00PE 17.00 28000 7.25 28000 2 2 4 100% 50% 100% 49% 16 CIPL15SEP680.00PE 15.85 29000 8.25 29000 2 2 2 100% 100% 100% 1

Adjudication Order in respect of PRM Power and Projects (P) Ltd Page 4 of 26 S. No Contract Name Avg. Buy Rate (Rs.) Total Buy Volume (no. of units) Avg. Sell Rate (Rs.) 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 34 HDFC15SEP1260.00PE 17.00 22000 3.00 22000 2 2 8 100% 25% 100% 26% 35 HDFC15SEP1290.00PE 36.00 15000 19.00 15000 2 2 6 100% 33% 100% 23% 36 IIBK15SEP1020.00CE 19.00 20000 6.25 20000 2 2 2 100% 100% 100% 100% 37 IIBK15SEP860.00PE 11.40 25000 3.25 25000 2 2 2 100% 100% 100% 100% 38 MNML15SEP1380.00CE 38.00 21000 22.40 21000 2 2 4 100% 50% 100% 51% 39 RELI15SEP1120.00CE 7.50 24000 1.75 24000 2 2 2 100% 100% 100% 100% 40 RELI15SEP930.00PE 8.00 25000 2.65 25000 2 2 4 100% 50% 100% 50% 41 SBIL15AUG230.00PEW3 3.25 30000 2.25 30000 2 2 2 100% 100% 100% 100% 42 SBIL15AUG240.00PE 2.20 70000 0.35 70000 2 2 6 100% 33% 100% 26% 43 SBIL15SEP220.00PE 4.00 56000 1.25 56000 2 2 4 100% 50% 100% 53% 44 SHTF15AUG840.00PE 17.50 32000 6.25 32000 2 2 4 1

Source: SecMarx — sebi:EAD-7/BJD/BKM/2018-19/1825. 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.