sebi:EAD-7/BJD/NJMR/2018-19/2017
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Facts / Headnote
Violation found; penalty imposed under Section 15HA of SEBI Act
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
- Phool Chand Jain
Holding
The Noticee, Phool Chand Jain, violated Regulations 3(a), 3(b), 3(c), 3(d), 4(1) and 4(2)(a) of the SEBI (PFUTP) Regulations, 2003 by executing 65 non-genuine reversal trades in 26 illiquid stock option contracts on BSE, creating artificial volume, and is liable for monetary penalty under Section 15HA of the SEBI Act.
Full text
Adjudication Order in respect of Phool Chand Jain Page 2 of 27 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
Adjudication Order in respect of Phool Chand Jain Page 3 of 27 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 ITCL15JUL290.00CE 21.60 68000 13.05 68000 2 2 7 100% 29% 100% 63% 15 JAIA15MAR24.00CEW2 2.10 424000 0.70 424000 2 2 8 100% 25% 100% 19% 16 JISL15JUL75.00CE 3.20 200000 0.20 200000 5 5 14 100% 36% 100% 27% 17 JSWE15MAR115.00PE 5.25 220000 0.70 220000 2 2 28 100% 7% 100% 9% 18 JSWE15MAR120.00CE 3.70 500000 0.70 500000 2 2 26 100% 8% 100% 19% 19 KARB15MAR130.00PE 4.80 374000 0.80 374000 2 2 16 100% 13% 100% 19% 20 LNTF15JUL70.00CE 3.23 236000 0.25 236000 5 5 33 100% 15% 100% 16% 21 NHPC15JUL14.00CEW1 5.90 176000 3.70 176000 2 2 8 100% 25% 100% 76% 22 NHPC15MAR20.00CEW2 1.25 1250000 0.65 1250000 2 2 10 100% 20% 100% 30% 23 PFCL15MAR270.00PE 7.00 250000 1.00 250000 2 2 26 100% 8% 100% 20% 24 PFCL15MAR280.00PE 6.00 363000 0.50 363000 2 2 44 100%
Adjudication Order in respect of Phool Chand Jain Page 4 of 27 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.
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Source: SecMarx — sebi:EAD-7/BJD/NJMR/2018-19/2017. 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.