sebi:ORDER/SBM/KL/2021-22/14006
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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. 28A
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
Parties
- Mr. Abhiraj M Pujara
Holding
The Noticee, Mr. Abhiraj M Pujara, violated Regulations 3(a), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003 by executing 59 non-genuine reversal trades in 8 illiquid stock option contracts at BSE, thereby creating artificial volume of 38,39,250 units. A penalty of Rs. 5,00,000/- was imposed under Section 15HA of the SEBI Act.
Full text
Adjudication Order in the matter of Dealings in Illiquid Stock Options at BSE Page 2 of 16 of artificial volume to the tune of 826.21 crore units or 54.68% of the total market volume in the Stock Options segment of BSE during the investigation period. 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 and have resulted in the creation of artificial volumes in the stock options segment at BSE.
Adjudication Order in the matter of Dealings in Illiquid Stock Options at BSE Page 3 of 16 SHOW CAUSE NOTICE, HEARING AND REPLY
Adjudication Order in the matter of Dealings in Illiquid Stock Options at BSE Page 4 of 16 volume in the stock option contract at BSE has been generated by the Noticee through such non- genuine trades. From the table above, it is observed that the artificial volume created as no. of units reversed in non-genuine trades is 6,40,000 shares comprising both volume of initial trade and volume of reversal trade, while not considering the volume which is not reversed. iv. It is further observed from the trade data of the Noticee that it has allegedly entered into non- genuine trades in 8 contracts wherein it executed a total of 59 trades all of which were, prima facie, non-genuine trades. In view of this, it is alleged that such fraudulent trades of the Noticee had resulted into creation of artificial volume of total 38,39,250 units. v. In this regard, details of all the alleged non-genuine trades of the Noticee in Stock Option Segment of BSE during relevant period are attached as Annexure B. From the perusal of the trade data of the alleged non-genuine trades of the Noticee, it is observed that Noticee has allegedly executed non-genuine trades in 8 contracts. The total volume of 38,39,250 units generated by the Noticee in these 8 contracts due to its alleged non-genuine trades was artificial volume generated by the Noticee in the stock option segment of BSE. These alleged non-genuine trades, executed by Noticee in above contracts, had significant differential in buy rates and sell
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Source: SecMarx — sebi:ORDER/SBM/KL/2021-22/14006. 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.