sebi:EAD-7/BJD/BKM/2018-19/1903

SEBI · SEBI · B J Dilip, Adjudicating Officer

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Facts / Headnote

Noticee held liable for PFUTP violations and penalty 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

• Pratik Steelcasting Limited

Holding

The Noticee 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 illiquid BSE Stock Options, and a monetary penalty of Rs. 5,00,000 under Section 15HA of the SEBI Act was imposed.

Full text

Adjudication Order in respect of Pratik Steelcasting Limited Page 2 of 22 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 Pratik Steelcasting Limited (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 Pratik Steelcasting Limited Page 3 of 22 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 7 KARB15MAR135.00PE 0.43 412000 4.99 412000 6 6 8 100% 75% 100% 80% 8 MFSL15MAR260.00PE 4.50 164000 10.60 164000 2 2 20 100% 10% 100% 11% 9 PFCL15MAR290.00CE 0.50 110000 9.50 110000 2 2 24 100% 8% 100% 7% 10 YESB15FEB680.00CE 75.00 15500 140.00 15500 2 2 12 100% 17% 100% 41%

Adjudication Order in respect of Pratik Steelcasting Limited Page 4 of 22 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(hereinafter referred to as PFUTP Regulations).

Source: SecMarx — sebi:EAD-7/BJD/BKM/2018-19/1903. 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.