sebi:ORDER/SRP/HKS/2018-19/2019

SEBI · SEBI · 2018-08-30 · Satya Ranjan Prasad, Adjudicating Officer

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Facts / Headnote

Noticee found liable for violation of Regulation 3(a),(b),(c),(d) and 4(1), 4(2)(a) of PFUTP Regulations; penalty to be 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

• Evergreen Technologies

Holding

The Noticee, Evergreen Technologies, was held 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 on BSE, creating artificial volumes and a false and misleading appearance of trading.

Full text

Adjudication Order in respect of Evergreen Technologies 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 Evergreen Technologies Page 3 of 28 (preventive), or the DRI or DDIT {Income Tax). As required by the SEZ law, the notice has always been a positive net foreign exchange earning achiever, year after year, and thus in this year, its renewal application was successfully considered by the Development Commissioner, SEZ, Kandla and SEZ Letter of Permission renewed for another five years. The Noticee is contributing, by achievement of positive net foreign exchange earnings, in bringing valuable foreign exchange to the country.

Adjudication Order in respect of Evergreen Technologies Page 4 of 28  It is submitted that the SCN completely ignores several critical facts and has completely misjudged the transactions of the Noticee to wrongly categorise them as artificial and non-genuine. Some such facts are as under;

Source: SecMarx — sebi:ORDER/SRP/HKS/2018-19/2019. 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.