sebi:EAD-7/BJD/VS/2018-19/1734
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Facts / Headnote
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
- M/s Omnipresent Credits Private Limited
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 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 Omnipresent Credits Private Limited Page 2 of 19 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 Omnipresent Credits Private Limited Page 3 of 19 c) A substantial 77% to 100% of volume generated by the Noticee in each of the above contracts was artificial volume, and further artificial volume generated by him also contributed to significant contribution of the total volume from the market in said contracts. d) Non genuine trades executed by 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 Omnipresent Credits Private Limited Page 4 of 19 SHOW CAUSE NOTICE, REPLY AND HEARING 9. A Show Cause Notice (hereinafter referred to as “SCN”) bearing ref. no. SEBI/HO/EAD-7/BJD/NJMR/22812/2018 dated August 10, 2018 was served upon the Noticee under Rule 4 of SEBI Adjudication Rules to show cause as to why an inquiry be not held against him in terms of Rule 4 of the Adjudication Rules and penalty be not imposed under Section 15HA of SEBI Act, 1992 for the violations alleged to have been committed by it. The SCN was duly served on the Noticee on August 21, 2018. The proof of service is on record. However, no reply was received from the Noticee.
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Source: SecMarx — sebi:EAD-7/BJD/VS/2018-19/1734. 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.