sebi:ORDER/GR/KG/2019-20/3730
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. 15J
- s. 15F
- s. 28A
- s. 2(1)
Regulations
- Reg. 4
- Reg. 3
- Reg. 2(1)(c)
- Reg. 4(1)
- Reg. 2(1)
- Reg. 2
- Reg. 3(a)
- Reg. 2(1)(c)(8)
Parties
- Gandiv Investment Private Limited
Holding
The Noticee, Gandiv Investment Private Limited, was held to have violated Regulations 3(a), (b), (c), (d) and 4(1), 4(2)(a) of the PFUTP Regulations by executing reversal trades in stock options at BSE that created artificial volume and a false or misleading appearance of trading, and a penalty of Rs. 5,00,000/- was imposed under Section 15HA of the SEBI Act.
Full text
Adjudication Order in respect of Gandiv Investment Private Limited Page 2 of 19 the various entities which indulged in execution of the non-genuine trades in the stock options Segment at BSE during the above referred investigation period. It was observed that Noticee had entered into reversal trades with its counterparties which involved squaring off transactions with significant difference in sell value and buy value of the transactions.
Adjudication Order in respect of Gandiv Investment Private Limited Page 3 of 19 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING
Adjudication Order in respect of Gandiv Investment Private Limited Page 4 of 19 S. No. Contract Name Avg. Buy Rate (Rs.) Total Buy Volum e (no. of units) Avg. Sell Rate (Rs.) Total Sell Volum e (no. of units) % of Non Genuin e trades of Notice e in the contrac t to Notice e’s Total trades in the Contra ct % of Non Genuin e trades of Entity in the contrac t to Total trades in the Contra ct % of Artificial Volume generate d by Noticee in the contract to Noticee’ s Total Volume in the Contract % of Artifici al Volum e generat ed by Notice e in the contrac t to Total Volum e in the Contra ct 1 ADEL15MAR5 80.00CEW3 53.52 287000 35.83 287000 100% 45% 100% 58% 2 ADEL15MAR6 00.00CEW3 35.15 462000 21.18 462000 100% 52% 100% 31% 3 AXIS15MAR6 80.00PEW2 97.37 621500 58.10 621500 100% 67% 100% 95% 4 CESC15MAR 620.00PEW3 29.22 380000 19.19 380000 100% 100% 100% 100% 5 ONGC15MAR 270.00CEW3 42.49 490000 31.90 500000 100% 73% 99% 78% 6 ONGC15MAR 280.00CEW3 32.69 805000 21.98 805000 90% 65% 88% 64% 7 VOLT15MAR2 35.00CEW3 49.80 280000 36.00 280000 100% 17% 100% 24% 8 VOLT15MAR2 40.00CEW3 48.31 799000 30.15 799000 92% 17% 97% 36% 9 VOLT15MAR2 55.00CEW3 30.32 420000 18.79 420000 92% 79% 88% 60%
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Source: SecMarx — sebi:ORDER/GR/KG/2019-20/3730. 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.