sebi:ORDER/VV/NK/2020-21/10796

SEBI · SEBI · 2018-09-17 · Vijayant Kumar Verma, Adjudicating Officer

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Facts / Headnote

Penalty imposed on the Noticee for violation of PFUTP Regulations

Provisions invoked

• s. 15
• s. 11B
• s. 11
• s. 15H
• s. 15J
• s. 15F
• s. 28A

Regulations

• Reg. 4
• Reg. 3
• Reg. 2
• Reg. 3(a)
• Reg. 26

Parties

• Vaksh Steels Private Limited

Holding

The Noticee, Vaksh Steels Private Limited, violated Regulations 3(a), (b), (c), (d) and 4(1), 4(2)(a) of the PFUTP Regulations by executing reversal trades in illiquid stock options at BSE with the same counterparties on the same day, thereby creating artificial volume and a false and misleading appearance of trading. A penalty of Rs. 5,00,000/- was imposed under Section 15HA of the SEBI Act.

Full text

Adjudication Order in respect of Vaksh Steels Private Limited. Page 2 of 14 deemed fit in terms of Rule 5 of the Adjudication Rules and in terms of Section 15HA of the SEBI Act. Subsequently, in the matter the undersigned has been appointed as AO by SEBI, on August 13, 2019, in the place of Shri Sahil Malik to inquire into and adjudge, the violation alleged to have been committed by the Noticee.

Adjudication Order in respect of Vaksh Steels Private Limited. Page 3 of 14 6. I note that despite all the above, the Noticee has failed to submit its reply to the SCN and has not refuted the charges. The Noticee has also failed to avail the opportunity of personal hearing granted on the grounds of natural justice. In the stated circumstances, I am proceeding with the matter taking into consideration the facts and circumstances of the case and the material on record.

Adjudication Order in respect of Vaksh Steels Private Limited. Page 4 of 14 11. It is pertinent to mention here the relevant provisions of Regulation 3 (a), (b), (c), (d) and 4 (1), 4 (2) (a) of PFUTP Regulations, allegedly violated by the Noticee:-

Source: SecMarx — sebi:ORDER/VV/NK/2020-21/10796. 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.