sebi:EAD-7/BJD/NJMR/2018-19/1741
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Facts / Headnote
Violation established; penalty of Rs. 5,00,000 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
- Positiveview Commercial Pvt., 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 in illiquid BSE Stock Options creating artificial volume. The Noticee is liable under Section 15HA of SEBI Act, 1992 and a penalty of Rs. 5,00,000 is imposed.
Full text
Adjudication Order in respect of Positiveview Commercial Pvt., Ltd., Page 2 of 20 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 Positiveview Commercial Pvt., Ltd., Page 3 of 20 c) A substantial 17% 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 Positiveview Commercial Pvt., Ltd., Page 4 of 20 to why an inquiry be not held against it in terms of Rule 4 of the Adjudication Rules and penalty be not imposed under Section 15HA of SEBI Act, 1992 for the violations alleged to have been committed by it. The SCN was received by the Noticee on September 7, 2018. The Noticee vide email dated September 17, 2018 sought additional time of 15 days to furnish its reply to the charges alleged in the SCN. The Noticee vide letter dated October 15, 2018 (received on November 16, 2018) sought certain documents relating to the current Adjudication proceedings.
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Source: SecMarx — sebi:EAD-7/BJD/NJMR/2018-19/1741. 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.