sebi:EAD-7/BJD/BKM/2018-19/2296

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

• R. P. Computer Forms Pvt. Ltd.

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 the Stock Options segment of BSE, and is liable for monetary penalty under Section 15HA of the SEBI Act.

Full text

Adjudication Order in respect of R. P. Computer Forms Pvt. Ltd. Page 2 of 24 Forms 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 R. P. Computer Forms Pvt. Ltd. Page 3 of 24 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 8 BOBL15APR180.00PEW1 10.00 43750 6.55 43750 2 2 4 100% 50% 100% 49% 9 BOBL15APR185.00PEW1 15.55 38750 12.05 38750 2 2 4 100% 50% 100% 45% 10 DLFL15APR145.00CEW1 22.90 20000 12.90 20000 2 2 2 100% 100% 100% 100% 11 DLFL15APR180.00PEW2 19.90 20000 9.50 20000 2 2 2 100% 100% 100% 100% 12 EXID15MAR165.00CEW3 20.98 262000 11.30 262000 8 8 13 100% 62% 100% 74% 13 HDIL15MAR80.00CE 40.00 164000 20.91 164000 5 5 11 100% 45% 100% 40% 14 INCM15APR110.00PEW1 19.20 20000 10.10 20000 2 2 6 100% 33% 100% 33% 15 INCM15APR75.00CEW3 25.90 20000 12.90 20000 2 2 2 100% 100% 100% 100% 16 INCM15APR80.00CEW2 16.40 20000 12.50 20000 2 2 4 100% 50% 100% 42% 17 PFCL15APR260.00PEW1 3.00 45000 0.55 45000 2 2 4 100% 50% 100% 48% 18 PFCL15APR280.00PEW1 10.25 410

Adjudication Order in respect of R. P. Computer Forms Pvt. Ltd. Page 4 of 24 6. From the above table, the following is observed as regards to dealings of the Noticee: a) The Noticee had executed non genuine trades in 32 contracts, wherein in respect of 5 contracts, all the trades were non genuine trades. b) The number of non-genuine trades of the Noticee had significantly contributed to the total number of trades from the market in the above contracts, as a substantial 10% to 100% of the trades that happened in the aforementioned contracts were due to non-genuine trades executed by the Noticee. c) A substantial 4% to 100% of volumes generated by the Noticee in each of the above contracts were artificial volume, and further artificial volume generated by it also contributed to significant contribution of the total volume from the market in said contracts. d) Non genuine trades executed by the Noticee in above contracts had significant differential in buy rates and sell rates considering that the trades were reversed on same day.

Source: SecMarx — sebi:EAD-7/BJD/BKM/2018-19/2296. 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.