sebi:ORDER/GR/KG/2019-20/5166
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Facts / Headnote
Penalty imposed on 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
- Excell Steel
Holding
The Noticee, Excell Steel, was held liable for violating Regulations 3(a), (b), (c), (d) and 4(1), 4(2)(a) of the PFUTP Regulations by executing non-genuine reversal trades in the stock options segment at BSE that created artificial volume and a false or misleading appearance of trading.
Full text
Adjudication Order in respect of Excell Steel Page 2 of 23 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 Excell Steel (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 Excell Steel Page 3 of 23 Biju. S. Thereafter, the undersigned was appointed the AO in the instant matter, communicated vide order dated May 22, 2019.
Adjudication Order in respect of Excell Steel Page 4 of 23 S. No. Contract Name Avg. Buy Rate (Rs.) Total Buy Volume (no. of units) Avg. Sell Rate (Rs.) Total Sell Volum e (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 generated by Noticee in the contract to Total Volume in the Contract 1 ADPW15JUL26.00CE 3.50 168000 2.00 168000 100% 25% 100% 35% 2 ADPW15JUN26.00CE 5.00 48000 3.00 48000 100% 33% 100% 86% 3 ALBK15SEP90.00PE W2 7.60 44000 4.00 44000 100% 100% 100% 100% 4 ANBK15AUG50.00C EW2 13.00 88000 19.70 88000 100% 50% 100% 42% 5 ANBK15AUG85.00P EW3 8.50 100000 15.60 100000 100% 100% 100% 100% 6 ANBK15AUG90.00P E 12.70 168000 18.70 168000 100% 50% 100% 67% 7 ANBK15AUG90.00P EW3 12.60 172000 18.40 172000 100% 25% 100% 45% 8 ANBK15JUL60.00CE W4 8.00 168000 5.00 168000 100% 50% 100% 75% 9 BHRT15JUL430.00CE W4 9.20 69000 2.69 69000 100% 29% 100% 34% 10 BOBL15JUL145.00CE W4 6.30 60000 1.30 60000 100% 100% 100% 100% 11 CARN15JUL175.00CE W4 11.57 88000 7.00 88000 100% 100% 100% 100% 12 CARN15JUL175.00PE 5.10 120000 1.00 120000 100% 100% 100% 100% 13 CARN15JUL180.00CE 10.00 32000 5.30 32000 100% 50% 100% 24% 14 CARN15JUL190.00PE W3 10.50 65000 4.50 65000 100% 100% 100% 100% 15 DABU15AUG300.00C E 14.00 30000 5.80 30000
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Source: SecMarx — sebi:ORDER/GR/KG/2019-20/5166. 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.