sebi:EAD-7/BJD/NJMR/2018-19/2014
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Facts / Headnote
Penalty of Rs 5,00,000 imposed on the Noticee under Section 15HA of the 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
- Pasha Finance Pvt., Ltd.
Holding
The Noticee executed non-genuine reversal trades creating artificial volume in illiquid stock options at BSE, violating Regulations 3(a), 3(b), 3(c), 3(d), 4(1) and 4(2)(a) of the SEBI (PFUTP) Regulations, 2003, 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 Pasha Finance Pvt., Ltd., Page 2 of 20 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 Pasha Finance Pvt., Ltd., Page 3 of 20 6. From the above table, the following is observed as regards to dealings of the Noticee: a) The Noticee had executed non-genuine trades in 12 contracts, wherein in respect of 2 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 9% to 100% of the trades that happened in the aforementioned contracts were due to non-genuine trades executed by the Noticee. c) A substantial 6% 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 Pasha Finance Pvt., Ltd., Page 4 of 20 SEBI Adjudication Rules, 1995 read with Section 15I (1) and (2) of SEBI Act, and if satisfied that penalty is liable, 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/2018-19/2014. 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.