sebi:EAD-7/BJD/VS/2018-19/1926
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Facts / Headnote
Violation established; penalty of Rs 8,00,000 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 Orbit Financial Capital
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 BSE stock options creating artificial volume, and is liable to monetary penalty under Section 15HA of SEBI Act, 1992, with penalty of Rs 8,00,000 imposed.
Full text
Adjudication Order in respect of Orbit Financial Capital Page 2 of 22 Orbit Financial Capital (hereinafter referred to as “Noticee”) was one of the various 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 allegations against it for execution of non-genuine trades.
Adjudication Order in respect of Orbit Financial Capital Page 3 of 22 Sl. Contract Name Avg. Buy Rate (Rs.) Total Buy Volume (no. of units) Avg. Sell Rate (Rs.) Total Sell Volume (no. of units) Number of non genuine trades executed by Entity in the Contract Total number of trades executed by the Entity in the Contract 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 generate d by Noticee in the contract to Total Volume in the Contract 14 GAIL15JAN380.00CE 38.86 100000 26.40 100000 6 6 6 100% 100% 100% 100% 15 GOIL14DEC320.00PEW1 32.00 75000 25.23 75000 13 13 13 100% 100% 100% 100% 16 HAIL15FEB270.00PEW1 25.90 65000 16.93 65000 6 6 14 100% 43% 100% 39% 17 HXTL14DEC245.00PEW1 29.29 42000 17.03 42000 15 15 15 100% 100% 100% 100% 18 LICH15JAN420.00CEW1 20.22 100000 9.60 100000 7 7 7 100% 100% 100% 100% 19 PFCL15MAR270.00CEW2 18.48 107000 9.50 107000 6 6 33 100% 18% 100% 9%
Adjudication Order in respect of Orbit Financial Capital Page 4 of 22 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/VS/2018-19/1926. 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.