sebi:ORDER/SRP/HKS/2018-19/1896

SEBI · SEBI · 2018-10-08 · Satya Ranjan Prasad, Adjudicating Officer

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Facts / Headnote

Noticee held liable for violation of Regulation 3(a),(b),(c),(d) and 4(1), 4(2)(a) of PFUTP Regulations; penalty imposed under Section 15HA of SEBI Act

Provisions invoked

• s. 15
• s. 15H
• s. 15J
• s. 15F

Regulations

• Reg. 4
• Reg. 3
• Reg. 2(1)(c)
• Reg. 2
• Reg. 3(a)
• Reg. 2(1)

Parties

• Gladiator Vyapaar Private Limited

Holding

The Noticee was found to have executed non-genuine trades in illiquid stock options at BSE, creating artificial volume and a false or misleading appearance of trading, thereby violating Regulation 3(a),(b),(c),(d) and 4(1), 4(2)(a) of the PFUTP Regulations, and was held liable to penalty under Section 15HA of the SEBI Act.

Full text

Adjudication Order in respect of Gladiator Vyapaar Private Limited Page 2 of 28 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.

Adjudication Order in respect of Gladiator Vyapaar Private Limited Page 3 of 28  It is submitted that the Noticee has been carrying out trading in various segments and Exchanges inter alia including NSE, BSE and MCX and a summary of the transactions is as under:

Adjudication Order in respect of Gladiator Vyapaar Private Limited Page 4 of 28  It is submitted that the Noticee has made payments through banking channel to the Exchange through its broker for the obligations of generated through the transactions. All these transactions have been perfectly recorded by the Noticee in the regular books of accounts, records and Income Tax Returns. It is extremely absurd on the part of SEBI to suddenly label these transactions as artificial and non-genuine after 3 to 4 years of the transactions on completely untenable grounds and unjustified reasons and therefore the Notice should be set aside on this reason alone, leave apart other valid reasons and explanation herein below.

Source: SecMarx — sebi:ORDER/SRP/HKS/2018-19/1896. 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.