sebi:ORDER/GR/KG/2019-20/3931
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Facts / Headnote
Proceedings initiated against the Noticee for alleged violation of Regulations 3(a),(b),(c),(d) and 4(1), 4(2)(a) of PFUTP Regulations; final penalty quantum not stated in the provided excerpts
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
- Fastner Machinery Dealers Private Limited
Holding
The Noticee is alleged to have violated Regulations 3(a),(b),(c),(d) and 4(1), 4(2)(a) of the PFUTP Regulations by executing non-genuine reversal trades creating artificial volume in illiquid stock options at BSE, and adjudication proceedings under Section 15HA of the SEBI Act have been initiated against it.
Full text
Adjudication Order in respect of Fastner Machinery Dealers Private Limited Page 2 of 21 3. In view of the large scale reversal of trades that were observed in the illiquid stock options segment at BSE, it is alleged that these trades were non-genuine in nature. It was observed that Fastner Machinery Dealers Private Limited (hereinafter referred to as “Noticee”) was one of 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 Fastner Machinery Dealers Private Limited Page 3 of 21 in the place of Shri Biju. S. Thereafter, the undersigned was appointed as the AO in the instant matter, communicated vide order dated May 22, 2019. These proceedings are therefore been carried forward where they had been left off by the previous AO, and an opportunity of personal hearing was granted as detailed hereinafter.
Adjudication Order in respect of Fastner Machinery Dealers Private Limited Page 4 of 21 S. No. Contract Name Avg. Buy Rate (Rs.) Total Buy Volume (no. of units) Avg. Sell Rate (Rs.) Total Sell Volume (no. of units) % 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 generated 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 1 ADPW15MAY34.00CE 9.70 60000 6.55 60000 100% 14% 100% 7% 2 ADPW15MAY38.00CE 4.20 100000 2.20 100000 100% 100% 100% 100% 3 ADPW15MAY46.00PEW2 7.70 168000 4.70 168000 100% 50% 100% 47% 4 ANBK15MAY70.00CEW3 12.50 68000 7.50 68000 100% 20% 100% 10% 5 ANBK15MAY75.00CEW3 5.24 172000 2.80 172000 100% 100% 100% 100% 6 ANBK15MAY85.00PE 10.44 108000 6.74 108000 100% 29% 100% 23% 7 DISH15MAY100.00CE 2.80 236000 0.80 236000 100% 100% 100% 100% 8 DISH15MAY75.00CEW3 10.76 160000 6.67 160000 100% 27% 100% 19% 9 DISH15MAY80.00CEW3 4.00 148000 2.00 148000 100% 100% 100% 100% 10 DISH15MAY85.00PE 4.20 108000 1.90 108000 100% 100% 100% 100% 11 DISH15MAY85.00PEW2 8.48 160000 4.92 160000 100% 100% 100% 100% 12 DISH15MAY90.00PEW3 11.00 60000 6.00 60000 100% 33% 100% 22% 13 DISH15MAY95.00PEW3 17.80 32000 11.80 32000 100% 100% 100% 100% 14 DLFL15MAY115.00CEW3 12.30 50000 8.30 50000 100% 20% 100% 14% 15 DLFL15MAY130.00PEW2 6.2
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Source: SecMarx — sebi:ORDER/GR/KG/2019-20/3931. 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.