sebi:EAD-7/BJD/VS/2018-19/1595
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Facts / Headnote
Noticee held liable for non-genuine trades creating artificial volume in Stock Options segment of BSE; monetary penalty imposed (amount not specified in excerpt)
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
- M/s Radhey Govind Steel & Alloy Private Limited
Holding
The Noticee was found to have executed non-genuine trades in 24 stock option contracts on BSE, generating artificial volume of 2,43,40,500 units through synchronized reversal trades with the same counterparties, in contravention of PFUTP Regulations.
Full text
Adjudication Order in respect of M/s Radhey Govind Steel & Alloy Private Limited Page 2 of 29 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 him for execution of non- genuine trades.
Adjudication Order in respect of M/s Radhey Govind Steel & Alloy Private Limited Page 3 of 29 S. No Contract Name Avg. Buy Rate (Rs.) Total Buy Volume (no. of units) Avg. Sell Rate (Rs.) 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 11 HDIL15MAR120.00PEW2 2.50 136000 9.80 136000 2 2 8 100% 25% 100% 46% 12 HDIL15MAR125.00CEW2 2.50 180000 5.00 180000 2 2 10 100% 20% 100% 22% 13 INCM15MAR100.00CE 0.80 158000 6.80 158000 2 2 27 100% 7% 100% 12% 14 IOBL15MAR45.00CE 2.30 832000 4.10 832000 2 2 13 100% 15% 100% 21% 15 JAIA15MAR26.00PEW2 0.70 1048000 1.65 1048000 2 2 19 100% 11% 100% 32% 16 JSWE15MAR115.00CEW3 2.08 840000 4.45 840000 4 4 21 100% 19% 100% 38% 17 JSWE15MAR115.00PEW3 0.60 464000 4.90 464000 4 4 9 100% 44% 100% 47% 18 KARB15MAR130.00CEW3 4.40 454000 6.60 454000 2 2 8 100% 25% 100% 38% 19 KARB15MAR130.00PE 0.60 274000 4.25 274000 2 2 16 100% 13% 100% 14% 20 NMDC15MAR140.00PE 0.66 964000 4.80 964000 8 8 8 100% 100% 100% 100% 21 PFCL15MAR2
Adjudication Order in respect of M/s Radhey Govind Steel & Alloy Private Limited Page 4 of 29 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/VS/2018-19/1595. 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.