sebi:ORDER/SRP/HKS/2018-19/2224
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Noticee held liable for violations of Regulation 3(a), (b), (c), (d) and 4(1), 4(2)(a) of PFUTP Regulations and liable for penalty under Section 15HA of the 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
- IM+ Investments & Capital Private Limited
Holding
The Noticee was held to have indulged in execution of reversal trades in Stock Options with same entities on the same day, which were non-genuine in nature and had created false or misleading appearance of trading in terms of artificial volumes, thereby violating Regulation 3(a), (b), (c), (d) and 4(1), 4(2)(a) of PFUTP Regulations and liable for penalty under Section 15HA of the SEBI Act.
Full text
Adjudication Order in respect of IM+ Investments & Capital Private Limited Page 2 of 28 APPOINTMENT OF ADJUDICATING OFFICER
Adjudication Order in respect of IM+ Investments & Capital Private Limited Page 3 of 28 It is submitted that the transactions are carried out on the anonymous platform of the Exchange and settled by the clearing corporation. It is submitted that all the transactions executed by the Noticee are genuine, bonafide and executed in complete compliance with all the requirements of SEBI and Exchanges.
Adjudication Order in respect of IM+ Investments & Capital Private Limited Page 4 of 28 b. The SCN is issued based on imaginary and presumptive grounds. It categorises trades of the Noticee as non-genuine in spite of the fact that all these transactions were carried out on a registered Stock Exchange. Does SEBI intend to say that Exchange allowed non- genuine trading and also made pay-out for the same? This is extremely absurd and untenable as no registered Exchange will allow execution of non-genuine trades and such non-genuine trades, if any, cannot and would not have been settled through payment and receipt of real money.
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Source: SecMarx — sebi:ORDER/SRP/HKS/2018-19/2224. 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.