sebi:ORDER/SBM/KL/2021-22/14088
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Facts / Headnote
Noticee held to have violated Regulations 3(a), 4(1) and 4(2)(a) of PFUTP Regulations and penalty of Rs. 5,00,000 imposed under Section 15HA of SEBI Act
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 28A
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
Parties
- Ms. Anju Neotia
Holding
The Noticee violated Regulations 3(a), 4(1) and 4(2)(a) of the PFUTP Regulations by executing 4 non-genuine reversal/synchronized trades in 2 illiquid stock option contracts at BSE creating artificial volume of 48,000 units, and is liable to monetary penalty of Rs. 5,00,000 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 14 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 14 SHOW CAUSE NOTICE, HEARING AND REPLY
Adjudication Order in the matter of Dealings in Illiquid Stock Options at BSE Page 4 of 14 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 48,000 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 2. 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 2 contracts. The total volume of 48,000 units generated by the Noticee in these 2 contracts due to her 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 rates considering that the trades were reversed on same day. vi. Further, summary of dealings of Noticee in 2 Stock Options contracts in which she had allegedly executed non genuine trades during the relevant period is enclosed.. vii. In view of the foregoing, it is alleged that the Noticee, by indulging in execution of reversal trades in Stock Options with same entities on the same day, which were non-genuine in nature, has created false or misleading appearance of trading in the aforementioned contracts traded in the option segment of BSE. In view of the fact that these
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Source: SecMarx — sebi:ORDER/SBM/KL/2021-22/14088. 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.