sebi:EAD-7/BJD/NJMR/2018-19/2150
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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
- Poonam Drums and Containers Private Ltd.
Holding
The Noticee was found to have violated Regulations 3(a), 3(b), 3(c), 3(d), 4(1) and 4(2)(a) of the SEBI (PFUTP) Regulations, 2003 by executing non-genuine reversal trades in stock options that created artificial volume and a false or misleading appearance of trading.
Full text
Adjudication Order in respect of Poonam Drums and Containers Private Ltd., Page 2 of 23 “Noticee”) was one of the various entities which was 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 Poonam Drums and Containers Private 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 13 JSWE15AUG70.00CEW2 5.57 514000 2.45 514000 5 5 5 100% 100% 100% 100% 14 LNTF15AUG80.00PEW3 9.00 32000 6.00 32000 2 2 6 100% 33% 100% 16% 15 MCRS15AUG210.00CEW2 8.40 252000 3.61 252000 3 3 3 100% 100% 100% 100% 16 MSSL15AUG330.00CEW2 13.50 182250 8.50 182250 2 2 2 100% 100% 100% 100% 17 OBNK15JUL150.00CE 16.20 61000 7.04 61000 3 3 3 100% 100% 100% 100% 18 PNBK15AUG155.00CE 7.15 16000 0.50 16000 2 2 8 100% 25% 100% 7% 19 PNBK15AUG155.00PEW3 5.00 34000 2.00 34000 2 2 2 100% 100% 100% 100% 20 SYND15JUL80.00CE 14.20 70000 8.50 70000 3 3 3 100% 100% 100% 100% 21 SYND15JUL90.00CE 14.00 40000 9.00 40000 2 2 2 100% 100% 100% 100% 22 UCOB15JUL45.00CE 9.60 84000 6.00 84000 2 2 14 100% 14% 100% 10% 23 VOLT15JUL310.00PE 8.00 260
Adjudication Order in respect of Poonam Drums and Containers Private Ltd., Page 4 of 23 7. In view of the foregoing, it was alleged that the Noticee, indulged in execution of reversal of trades in Stock Options with same entities on the same day. Such trades are non-genuine in nature and have created false or misleading appearance of trading in terms of artificial volumes in stock options and therefore alleged to be manipulative, deceptive in nature. Thus, it was alleged that the Noticee had violated the provisions of Regulation 3(a), (b), (c), (d), 4(1) and 4(2) (a) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003.
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Source: SecMarx — sebi:EAD-7/BJD/NJMR/2018-19/2150. 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.