sebi:EAD-7/BJD/NJMR/2018-19/1881

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.

Facts / Headnote

Proceeded ex-parte against the Noticee for executing non-genuine trades in Stock Options segment of BSE; found in 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

• Pragya Commodities Pvt. Ltd.

Holding

The Noticee, Pragya Commodities Pvt. Ltd., was found to have violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the SEBI (PFUTP) Regulations, 2003 by executing 142 non-genuine trades in 47 unique contracts in the Stock Options segment of BSE, creating artificial volume of 7,49,68,000 units. The matter was decided ex-parte as the Noticee neither submitted a reply nor appeared for personal hearing.

Full text

Adjudication Order in respect of Pragya Commoties Pvt., Ltd., Page 2 of 23 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 Pragya Commoties Pvt., Ltd., Page 3 of 23 Sl. No Contract Name Avg. Buy Rate (`) Total Buy Volume (no. of units) Avg. Sell Rate (`) Total Sell Volume (no. of units) Numb er of non genuin e trades execut ed by Entity in the Contra ct Total num ber of trade s exec uted by the Entit y in the Contr act Total num ber of trade s exec uted 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 generate d 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 14 INCM15JAN105.00CEW4 2.03 186000 0.05 186000 6 6 32 100% 19% 100% 17% 15 IOBL15JAN65.00CE 0.80 200000 0.05 200000 2 2 30 100% 7% 100% 16% 16 IOBL15JAN65.00CEW4 1.00 2000000 0.05 2000000 2 2 9 100% 22% 100% 86% 17 JAIA15FEB22.00PEW2 0.40 3752000 0.05 3752000 2 2 39 100% 5% 100% 49% 18 JAIA15JAN22.00PEW3 0.55 448000 0.05 448000 2 2 27 100% 7% 100% 23% 19 JISL15JAN60.00PEW3 1.30 200000 0.05 200000 2 2 4 100% 50% 100% 81% 20 JISL15MAY70.00CEW2 1.35 188000 0.05 188000 2 2 11 100% 18% 100% 27% 21 JSWE15APR110.00PEW1 2.37 1744000 0.05 1744000 4 7 52 57% 8% 41% 9% 22 NHPC15JAN16.00PE 0.80 2010000 0.05 2010000 3 3 5 100% 60% 100% 100% 23 NHPC15JAN22.00CE 1.35 1400000 0.05 1400000 2 2 32 100% 6% 100% 20% 24 NHPC15JAN24.00CE 1.05 2060000 0.05

Adjudication Order in respect of Pragya Commoties Pvt., Ltd., Page 4 of 23 Sl. No Contract Name Avg. Buy Rate (`) Total Buy Volume (no. of units) Avg. Sell Rate (`) Total Sell Volume (no. of units) Numb er of non genuin e trades execut ed by Entity in the Contra ct Total num ber of trade s exec uted by the Entit y in the Contr act Total num ber of trade s exec uted 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 generate d 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 42 UCOB15JAN70.00CEW4 16.00 400000 12.00 400000 2 2 2 100% 100% 100% 100% 43 UCOB15JAN85.00CEW3 2.03 152000 0.05 152000 4 4 6 100% 67% 100% 43% 44 UNIT15FEB20.00CEW2 1.05 3150000 0.05 3150000 16 16 32 100% 50% 100% 37% 45 UNIT15FEB22.00CEW1 1.10 2997000 0.05 2997000 2 2 7 100% 29% 100% 90% 46 UNIT15FEB24.00CEW1 1.55 2268000 0.05 2268000 3 3 10 100% 30% 100% 70% 47 UNIT15JAN16.00PEW2 0.55 900000 0.05 900000 3 3 25 100% 12% 100% 42%

Source: SecMarx — sebi:EAD-7/BJD/NJMR/2018-19/1881. 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.