sebi:ORDER/SRP/HKS/2018-19/2401

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

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Facts / Headnote

Violation of PFUTP Regulations found; penalty imposed under Section 15HA of the SEBI Act

Provisions invoked

• s. 15
• s. 15H
• s. 15J
• s. 15F

Regulations

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

Parties

• Gangadham Tracon Private Limited

Holding

The Noticee, Gangadham Tracon Private Limited, was found to have violated Regulations 3(a), (b), (c), (d) and 4(1), 4(2)(a) of the PFUTP Regulations by executing 32 non-genuine reversal trades in 10 illiquid stock options contracts at BSE, creating artificial volume of 29,36,000 units, and a monetary penalty was imposed under Section 15HA of the SEBI Act.

Full text

Adjudication Order in respect of Gangadham Tracon Private Limited Page 2 of 25 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 Gangadham Tracon Private Limited Page 3 of 25 record. Save and except the present Notice, it has never received any notice from stock exchanges or SEBI.

Adjudication Order in respect of Gangadham Tracon Private Limited Page 4 of 25  Noticee submitted that all the trades in the stock options were settled in cash through the stock exchange mechanism. Unlike the Cash segment, there is no physical delivery of shares. Therefore, the alleged trading in the stock options cannot be alleged to have created any false or misleading appearance of trading in stock options.

Source: SecMarx — sebi:ORDER/SRP/HKS/2018-19/2401. 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.