sebi:ORDER/GR/KG/2019-20/5698
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Facts / Headnote
Noticee held to have violated Regulation 3(a), (b), (c), (d) and 4(1), 4(2)(a) of PFUTP Regulations; penalty determination not stated in the provided text
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
- Eveningstar Dealtrade Private Limited
Holding
The Noticee, Eveningstar Dealtrade Private Limited, was found to have violated Regulation 3(a), (b), (c), (d) and 4(1), 4(2)(a) of the PFUTP Regulations by executing non-genuine reversal trades in illiquid stock options contracts at BSE, creating artificial trading volumes.
Full text
Adjudication Order in respect of Eveningstar Dealtrade Private Limited Page 2 of 22 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 Eveningstar Dealtrade 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 Eveningstar Dealtrade Private Limited Page 3 of 22 on July 06, 2018, in the place of Shri 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 Eveningstar Dealtrade Private Limited Page 4 of 22 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 generated by Noticee in the contract to Total Volume in the Contract 1 ADPW15JUL22.00CEW2 7.50 228000 5.30 228000 100% 100% 100% 100% 2 ADPW15JUL24.00CE 8.00 48000 4.70 48000 100% 17% 100% 9% 3 ADPW15JUL34.00PE 5.40 72000 2.50 72000 100% 50% 100% 38% 4 AMBC15JUL235.00CE 13.00 135000 4.50 135000 100% 100% 100% 100% 5 ANBK15JUL60.00CE 10.80 88000 6.20 88000 100% 50% 100% 58% 6 ANBK15JUL90.00PE 19.50 128000 12.50 128000 100% 100% 100% 100% 7 ARVI15JUL260.00PEW4 8.00 78000 1.00 78000 100% 100% 100% 100% 8 BHEL15JUL260.00CE 8.40 50000 1.40 50000 100% 17% 100% 21% 9 BHRT15JUL430.00CEW 4 11.00 81000 3.00 81000 100% 14% 100% 40% 10 BIOC15JUL460.00PE 9.10 25000 1.10 25000 100% 100% 100% 100% 11 BIOC15JUL470.00CEW4 10.21 37500 2.24 37500 100% 100% 100% 100% 12 BIOC15JUL480.00PE 17.00 66500 5.00 66500 100% 25% 100% 51% 13 BOBL15AUG135.00CE W2 18.50 72000 13.00 72000 100% 100% 100% 100% 14 BOBL15JUL150.00CE 7.80 204000 2.39 204000 100% 50% 100% 57% 15 BOBL15JUL155.00PEW4 8.00 50000 3.0
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Source: SecMarx — sebi:ORDER/GR/KG/2019-20/5698. 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.