sebi:ORDER/SRP/HKS/2018-19/1763
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Facts / Headnote
Violation established; monetary penalty imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 15F
Regulations
- Reg. 4
- Reg. 3
- Reg. 2
- Reg. 3(a)
Parties
- Finelink Suppliers Private Limited, presently known as Stream Suppliers 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 in illiquid stock options at BSE creating artificial volume. The Noticee is liable for penalty under Section 15HA of the SEBI Act and a penalty of Rs.10,00,000 was imposed.
Full text
Page 2 of 19 APPOINTMENT OF ADJUDICATING OFFICER 2. Initially, Shri Biju. S was appointed as the Adjudicating Officer by SEBI, in the matter. Subsequently, on July 06, 2018 the undersigned has been appointed as the Adjudicating Officer, to inquire into and adjudge under Section 15HA of the Securities and Exchange Board of India Act, 1992, (hereinafter referred to as “SEBI Act”) the aforesaid violations alleged to have been committed by the Noticee.
Page 3 of 19 whose name mentioned in the SCN as well as in annexure is just a matter of chance. Noticee denied that there is any relations with any of the other entities. It is not possible to know that who are the buyer / seller or how many entities are involved in the matter. Noticee has traded in the Stock Options Segment of BSE on the basis of working knowledge without any vested interest.
Page 4 of 19 (AR) of the Noticee appeared on November 28, 2018 for personal hearing on behalf of the Noticee. AR reiterated the submissions made by the Noticee vide its aforementioned reply to the SCN and further submitted that the alleged matching of trades was a matter of coincidence and there was no intention of the Noticee to create artificial volume. AR also agreed to furnish copy of fresh incorporation certificate regarding change in name and address of the Noticee.
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Source: SecMarx — sebi:ORDER/SRP/HKS/2018-19/1763. 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.