sebi:ORDER/VV/HS/2019-20/6966

SEBI · SEBI · 2019-04-02 · Vijayant Kumar Verma, Adjudicating Officer

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Facts / Headnote

Penalty imposed under Section 15HA of the SEBI Act for fraudulent and unfair trade practices (amount not specified in the provided text)

Provisions invoked

• s. 15
• s. 15H
• s. 16
• s. 15J
• s. 15F
• s. 28A
• s. 14
• s. 238
• s. 14(1)

Regulations

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

Parties

• Dimension Steel & Alloys Private Limited

Holding

The Noticee was found to have violated Regulation 3(a), (b), (c), (d) and 4(1), 4(2)(a) of the PFUTP Regulations by executing 129 non-genuine trades in 35 illiquid stock option contracts on BSE, creating artificial volume of 85,68,000 units, and a penalty was imposed under Section 15HA of the SEBI Act.

Full text

Adjudication Order in respect of Dimension Steel & Alloys Private Limited. Page 2 of 26 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 Dimension Steel & Alloys Private Limited. Page 3 of 26 2. On perusal of the SCN, it is apparent that SEBI has referred to and relied on various material / documents while leveling the allegation, but no such material / documents have been made available to us. Consequently, we request SEBI to make available to us all the documents/ material relied upon by SEBI for alleging the charges against us in the SCN, including but not limited to the following documents/material viz. (a) Copy of the Investigation Report of SEBI based on which the allegations have been leveled in the SCN; (b) Noting of satisfaction recorded by the Hon'ble WTM that we have violated the provision of law as alleged; (c) Details of counterparties to our trades, viz. Address, e-mail and contact nos. (d) Details of all trades executed by our counterparties; (e) Copy of statements of various persons/entities as referred to in the order recorded by SEBI in the matter.

Adjudication Order in respect of Dimension Steel & Alloys Private Limited. Page 4 of 26 6. We have traded in the Stock Options on BSE Derivatives segment during the investigation period in the ordinary course, independently, based on our understanding of derivative markets and with a view to make profit. The price range at which we traded was allowed by the exchange.

Source: SecMarx — sebi:ORDER/VV/HS/2019-20/6966. 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.