sebi:ORDER/VV/NK/2020-21/10159
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Facts / Headnote
Noticee held liable for violation of PFUTP Regulations; penalty of Rs.5,00,000 imposed under Section 15HA of the SEBI Act on ex-parte basis.
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 4
- Reg. 3
- Reg. 2
- Reg. 3(a)
Parties
- Deejay Stocks 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, and is liable to monetary penalty under Section 15HA of the SEBI Act, quantified at Rs.5,00,000.
Full text
Adjudication Order in respect of Deejay Stocks Private Limited Page 2 of 19 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 Deejay Stocks Private Limited Page 3 of 19 the Noticee. In the said Hearing Notice, the Noticee was further advised to file its reply to the SCN latest by September 24, 2019.
Adjudication Order in respect of Deejay Stocks Private Limited Page 4 of 19 7. In this context, I would like to rely upon the observations of The Hon’ble Securities Appellate Tribunal (SAT) in the matter of Classic Credit Ltd. Vs. SEBI (Appeal No. 68 of 2003 decided on December 08, 2006) wherein the Hon’ble SAT, inter alia, took the following view "............ the appellants did not file any reply to the second show-cause notice. This being so, it has to be presumed that the charges alleged against them in the show-cause notice were admitted by them…….”.
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Source: SecMarx — sebi:ORDER/VV/NK/2020-21/10159. 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.