sebi:ORDER/AP/SS/2021-22/14436

SEBI · SEBI · 2021-04-30 · Ansuman Dev Pradhan, Adjudicating Officer

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Facts / Headnote

Penalty imposed on Noticee for violation of PFUTP Regulations, 2003

Provisions invoked

• s. 15
• s. 15H
• s. 15J
• s. 11C
• s. 15F
• s. 28A

Regulations

• Reg. 3
• Reg. 4(1)
• Reg. 3(a)

Parties

• Radha A Gupta

Holding

The Adjudicating Officer held that the Noticee violated regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003 by executing non-genuine reversal trades in stock options at BSE that created artificial volume, and imposed a penalty of ₹5,00,000 under section 15HA of the SEBI Act.

Full text

Adjudication Order in respect of Radha A Gupta in the matter of dealings in Illiquid Stock Options at BSE Page 2 of 22 violated the provisions of regulations 3(a),(b),(c),(d) and Regulations 4(1),4(2)(a) of the SEBI (Prohibition of Fraudulent and Unfair Trading Practices related to Securities Markets) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations, 2003”). APPOINTMENT OF ADJUDICATING OFFICER

Adjudication Order in respect of Radha A Gupta in the matter of dealings in Illiquid Stock Options at BSE Page 3 of 22 trades in 1 unique contract, which led to generation of alleged artificial volume of 26,000 units. These trades of the Noticee involved reversal with the same counterparty on the same day, but at different prices.

Adjudication Order in respect of Radha A Gupta in the matter of dealings in Illiquid Stock Options at BSE Page 4 of 22 (c) The Noticee’s two trades while dealing in the above said contract during the investigation period allegedly generated artificial volume of 26,000 units, which made up 3.91% of total market volume in the said contract during this period.

Source: SecMarx — sebi:ORDER/AP/SS/2021-22/14436. 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.