sebi:ORDER/SRP/HKS/2018-19/2366

SEBI · SEBI · 2016-10-24 · Satya Ranjan Prasad, Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Penalty imposed on the Noticee for violation of PFUTP Regulations

Provisions invoked

• s. 15
• s. 15H
• s. 15J
• s. 15F

Regulations

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

Parties

• Indus Portfolio Private Limited

Holding

The Noticee violated Regulations 3(a), (b), (c), (d) and 4(1), 4(2)(a) of the PFUTP Regulations by executing reversal trades in Stock Options with the same entities on the same day, thereby creating artificial volume, and is liable for penalty under Section 15HA of the SEBI Act. A penalty of Rs. 25,00,000 was imposed.

Full text

Adjudication Order in respect of Indus Portfolio 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 Indus Portfolio Private Limited Page 3 of 28 the period March'15 to Aug'15. It is submitted that the Noticee is subjected to the "inspection of books of accounts and other documents for Cash, F&O and CDX Segment" for the same period in November 2016 vide Exchange letter no. L/DOSS/INSP/AB-215-IR/2015-2016 dated 24.10.2016. It is noteworthy that there was no adverse observation made by the Exchange nor did they find any non-genuine trades, as alleged in the above SCN. (Noticee filed copy of BSE's Report dated 04.04.2018).

Adjudication Order in respect of Indus Portfolio Private Limited Page 4 of 28 Portfolio Pvt. Ltd. or its Associates. In fact we have come to know the existence of this counter party from the above SCN.

Source: SecMarx — sebi:ORDER/SRP/HKS/2018-19/2366. 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.