sebi:EAD-7/BJD/VS/2018-19/1791

SEBI · SEBI · B J Dilip, Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Penalty imposed on the Noticee 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

• M/s Raghav Commodities

Holding

The Noticee, M/s Raghav Commodities, violated Regulations 3(a), 3(b), 3(c), 3(d), 4(1) and 4(2)(a) of the SEBI (PFUTP) Regulations, 2003 by executing reversal trades in illiquid stock options at BSE, creating artificial volume and a false or misleading appearance of trading, and a penalty of Rs. 25,00,000 was imposed under Section 15HA of the SEBI Act, 1992.

Full text

Adjudication Order in respect of Raghav Commodities Page 2 of 33 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 Raghav Commodities Page 3 of 33 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 16 AMTK15APR160.00PEW1 21.10 30000 12.50 30000 2 2 4 100% 50% 100% 56% 17 AMTK15APR165.00PEW3 27.00 20000 14.50 20000 2 2 4 100% 50% 100% 42% 18 ANBK15APR65.00CEW1 19.50 32000 11.90 32000 2 2 6 100% 33% 100% 36% 19 ANBK15APR90.00PEW3 14.10 28000 7.50 28000 2 2 2 100% 100% 100% 100% 20 ANBK15APR95.00PEW2 20.90 28000 10.50 28000 2 2 2 100% 100% 100% 100% 21 ARVI15APR250.00CEW2 29.50 26000 20.10 26000 2 2 4 100% 50% 100% 57% 22 ARVI15APR270.00PEW2 18.00 30000 12.25 30000 2 2 8 100% 25% 100% 21% 23 ARVI15APR280.00PEW3 14.90 28000 3.90 28000 2 2 4 100% 50% 100% 65% 24 ARVI15MAR280.00CE 3.40 1121000 0.05 1121000 10 10 68 100% 15% 100% 19% 25 AUPL15APR1200.00PE 93.75 12500 72.30 12500 2 2 8 100% 25% 100% 18% 26 AXIS15APR500.00PE 8.00 30000 3.00 300

Adjudication Order in respect of Raghav Commodities Page 4 of 33 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 44 BHRT15MAR350.00CE 44.40 100000 34.00 100000 5 5 65 100% 8% 100% 7% 45 BIOC15APR440.00PEW2 9.95 25000 4.25 25000 2 2 6 100% 33% 100% 29% 46 BOBL15APR160.00CEW1 16.95 86250 13.20 86250 4 4 12 100% 33% 100% 35% 47 BOBL15APR160.00PEW1 1.43 85000 0.12 85000 4 4 8 100% 50% 100% 55% 48 BOBL15APR165.00CEW1 12.50 48750 8.25 48750 2 2 6 100% 33% 100% 41% 49 BOBL15APR165.00PEW1 1.33 90000 0.13 90000 4 4 6 100% 67% 100% 69% 50 BOBL15APR170.00CEW1 7.48 80000 4.14 80000 4 4 20 100% 20% 100% 18% 51 BOBL15APR170.00PEW1 2.48 82500 0.28 82500 4 4 4 100% 100% 100% 100% 52 BOBL15APR170.00PEW2 6.80 25000 3.25 25000 2 2 9 100% 22% 100% 12% 53 BOBL15APR175.00CEW1 5.52 93750 2.15 93750 4 4 6 100% 67% 100% 68% 54 BOBL15APR175.00PEW1 4.38 77500 2.03 77500 4 4 4 10

Source: SecMarx — sebi:EAD-7/BJD/VS/2018-19/1791. 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.