sebi:ORDER/GR/KG/2019-20/5247
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Facts / Headnote
Violation established; penalty of Rs. 5,00,000 imposed under Section 15HA
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
- DJM Securities Private Limited
Holding
The Noticee 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 BSE stock options. A monetary penalty of Rs.5,00,000 under Section 15HA of the SEBI Act was imposed on DJM Securities Private Limited.
Full text
Adjudication Order in respect of DJM Securities Private Limited Page 2 of 19 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 DJM Securities 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 DJM Securities Private Limited Page 3 of 19 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 DJM Securities Private Limited Page 4 of 19 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 generate d by Noticee in the contract to Total Volume in the Contract 1 AJPL15JUL1200.00CEW4 282.00 5500 463.80 5500 100% 100% 100% 100% 2 ALBK15FEB120.00PE 8.20 132000 13.51 132000 100% 40% 100% 20% 3 BHEL15JUL290.00PEW2 18.55 70000 39.95 70000 100% 100% 100% 100% 4 CANB15JUL250.00CEW3 27.80 51000 47.00 51000 100% 100% 100% 100% 5 CESC15MAR640.00PEW1 25.00 111000 42.74 111000 100% 7% 100% 6% 6 COAL15FEB360.00CE 14.80 120000 29.44 120000 100% 33% 100% 48% 7 ENGI15JUL175.00CEW4 36.80 41000 61.15 41000 100% 100% 100% 100% 8 EXID15JUL175.00PEW2 14.50 20000 22.00 20000 100% 100% 100% 100% 9 HAIL15MAR245.00CEW1 12.00 120000 24.25 120000 100% 100% 100% 100% 10 HAIL15MAR250.00CEW1 9.00 102000 19.91 102000 100% 62% 100% 41% 11 JSWE15AUG70.00CEW2 3.82 164000 8.70 164000 100% 60% 100% 32% 12 KARB15AUG135.00CEW3 4.00 78000 7.20 78000 100% 20% 100% 27% 13 SYND15AUG95.00CEW2 4.30 76000 9.95 76000 100% 18% 100% 48% e) By indulging in execution of aforesaid non-genuine reversal trades, the Noti
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Source: SecMarx — sebi:ORDER/GR/KG/2019-20/5247. 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.