sebi:EAD-7/BJD/NJMR/2018-19/1453
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Facts / Headnote
Show Cause Notice not set aside; penalty imposed on the Noticee
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)
- Reg. 2(1)
Parties
- Pilot Consultants Pvt., Ltd.
Holding
The Adjudicating Officer held that Pilot Consultants Pvt., Ltd. violated Regulations 3(a), 3(b), 3(c), 3(d), 4(1) and 4(2)(a) of the SEBI (PFUTP) Regulations, 2003 by executing 53 non-genuine reversal trades in 7 stock options contracts on BSE, creating artificial volume, and imposed a penalty of Rs. 5,00,000 under Section 15HA of the SEBI Act, 1992.
Full text
Adjudication Order in respect of Pilot Consultants Pvt., Ltd., Page 2 of 29 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 Pilot Consultants Pvt., Ltd., Page 3 of 29 a) The Noticee had executed non genuine trades in 7 contracts, wherein in respect of 4 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 47% to 100% of the trades that happened in the aforementioned contracts were due to non-genuine trades executed by the Noticee. c) A substantial 38% 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.
Adjudication Order in respect of Pilot Consultants Pvt., Ltd., Page 4 of 29 impose such penalty deemed fit in terms of Rule 5 of SEBI Adjudication Rules 1995 and Section 15HA of SEBI Act.
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Source: SecMarx — sebi:EAD-7/BJD/NJMR/2018-19/1453. 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.