sebi:ORDER/VV/HS/2019-20/6037
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Facts / Headnote
Penalty of Rs.5,00,000 imposed on the Noticee for violation of PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 4
- Reg. 3
- Reg. 2
Parties
- Dhanraksha Dealer Private Limited
Holding
The Noticee violated Regulations 3(a), (b), (c), (d) and 4(1), 4(2)(a) of PFUTP Regulations by executing non-genuine reversal trades in illiquid stock options creating artificial volume, and is liable to monetary penalty of Rs.5,00,000 under Section 15HA of the SEBI Act.
Full text
Adjudication Order in respect of Dhanraksha Dealer Private Limited. Page 2 of 21 1992, (hereinafter referred to as “SEBI Act”) read with Section 15-I (1) of the SEBI Act and Rule 3 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 (hereinafter referred to as “Adjudication Rules”) to conduct adjudication proceedings inter-alia in respect of the Noticee, in the manner specified under Rule 4 of the Adjudication Rules read with Section 15-I (1) and (2) of the SEBI Act, and if satisfied that penalty is liable, to impose such
Adjudication Order in respect of Dhanraksha Dealer Private Limited. Page 3 of 21 its letter dated October 15, 2019 requested to provide additional time to file reply to the SCN and also requested to reschedule the Hearing. Thereafter, vide letter dated October 21, 2019, the Noticee filed its reply to the SCN. The excerpts of the aforesaid reply of the Noticee are inter-alia reproduced hereunder.
Adjudication Order in respect of Dhanraksha Dealer Private Limited. Page 4 of 21 6. It is submitted that the BSE, did not alerted to the Noticee for alleged violation of SEBI regulation if any during the investigation period so that repetition of alleged violation can be stopped.
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Source: SecMarx — sebi:ORDER/VV/HS/2019-20/6037. 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.