sebi:ORDER/VV/HS/2020-21/7907

SEBI · SEBI · 2018-11-30 · Vijayant Kumar Verma, Adjudicating Officer

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Facts / Headnote

Penalty of Rs.5,00,000 imposed on Chunchun Ispat Private Limited for violation of Regulations 3(a), (b), (c), (d) and 4(1), 4(2)(a) of PFUTP Regulations

Provisions invoked

• s. 15
• s. 15H
• s. 15J
• s. 15F
• s. 28A

Regulations

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

Parties

• Chunchun Ispat Private Limited

Holding

The Noticee violated Regulations 3(a), (b), (c), (d) and 4(1), 4(2)(a) of the PFUTP Regulations by executing non-genuine reversal trades in illiquid BSE stock options creating artificial volume. A monetary penalty of Rs.5,00,000 under Section 15HA of the SEBI Act was imposed on Chunchun Ispat Private Limited.

Full text

Adjudication Order in respect of Chunchun Ispat Private Limited. Page 2 of 17 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 Chunchun Ispat Private Limited. Page 3 of 17 5. Further, in the interest of natural justice and in order to conduct inquiry as per Rule 4 of the Adjudication Rules, vide the said E-mail dated March 04, 2020, the Noticee was also provided an opportunity of the personal hearing on March 23,

Adjudication Order in respect of Chunchun Ispat Private Limited. Page 4 of 17 provided to the Noticee to refute the charges levelled against the Noticee. Therefore, I am inclined to decide the matter ex-parte taking into account the evidence / material available on record.

Source: SecMarx — sebi:ORDER/VV/HS/2020-21/7907. 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.