sebi:EAD-7/BJD/NJMR/2018-19/2013
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Facts / Headnote
Violation established; penalty of Rs 5,00,000 imposed under Section 15HA of SEBI Act, 1992
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
- PAT Financial Consultants 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. A monetary penalty of Rs 5,00,000 under Section 15HA of SEBI Act, 1992 was imposed.
Full text
Adjudication Order in respect of PAT Financial Consultants 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 PAT Financial Consultants Pvt., Ltd., Page 3 of 20 a) The Noticee had executed non-genuine trades in 10 contracts, wherein in respect of 1 contract, 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 23% to 100% of the trades that happened in the aforementioned contracts were due to non-genuine trades executed by the Noticee. c) A substantial 7% 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 PAT Financial Consultants Pvt., Ltd., Page 4 of 20 SHOW CAUSE NOTICE, REPLY AND HEARING
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Source: SecMarx — sebi:EAD-7/BJD/NJMR/2018-19/2013. 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.