sebi:EAD-7/BJD/BKM/2018-19/2436
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Facts / Headnote
Penalty of Rs 5,00,000 imposed under Section 15HA of SEBI Act, 1992 for violation of PFUTP Regulations
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
- Purbanchal Prestressed 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 creating artificial volume in illiquid BSE stock options and is liable to a monetary penalty of Rs 5,00,000 under Section 15HA of the SEBI Act, 1992.
Full text
Adjudication Order in respect of Purbanchal Prestressed Ltd. Page 2 of 23 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 Purbanchal Prestressed 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 it for execution of non-genuine trades.
Adjudication Order in respect of Purbanchal Prestressed Ltd. Page 3 of 23 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 9 HNDL15MAR155.00PEW1 3.75 128000 0.10 128000 2 2 4 100% 50% 100% 48% 10 HXTL15MAR280.00PE 14.90 88000 5.75 88000 2 2 4 100% 50% 100% 57% 11 IFCI15MAR30.00PE 0.99 424000 0.05 424000 3 3 11 100% 27% 100% 33% 12 INCM15MAR100.00CEW1 3.80 414000 0.10 414000 4 4 7 100% 57% 100% 81% 13 JISL15MAR70.00PE 6.20 16000 3.35 16000 2 2 6 100% 33% 100% 4% 14 JSWE15MAR120.00CEW1 4.40 324000 0.40 324000 2 2 36 100% 6% 100% 7% 15 LNTF15MAR90.00CEW1 2.64 1168000 0.05 1168000 25 25 74 100% 34% 100% 36% 16 PTCI15MAR75.00CE 6.90 228000 2.90 228000 2 2 9 100% 22% 100% 30% 17 SAIL15MAR85.00CEW1 1.20 392000 0.05 392000 2 2 9 100% 22% 100% 25% 18 SUNT15MAR430.00CEW1 17.00 83000 4.00 83000 8 8 10 100% 80% 100% 29% 19 TATP15FEB95.00CE 2.20 1020000 0.10 1020000 15
Adjudication Order in respect of Purbanchal Prestressed Ltd. Page 4 of 23 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.
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Source: SecMarx — sebi:EAD-7/BJD/BKM/2018-19/2436. 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.