sebi:Order/AK/RK/2025-26/32074
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Facts / Headnote
Penalty imposed on Noticee for violation of PFUTP Regulations
Provisions invoked
- s. 15
- s. 11B
- s. 11
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
- Reg. 26
Parties
- Parish Kirit Bhai Patel
Holding
The Noticee violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations by executing 20 non-genuine reversal trades in 7 stock options contracts resulting in artificial volume of 13,64,000 units, and a penalty of Rs 5,00,000 was imposed under Section 15HA of the SEBI Act.
Full text
Adjudication Order: Parish Kirit Bhai Patel in the matter of Illiquid Stock Options at BSE Page 2 of 15 APPOINTMENT OF ADJUDICATING OFFICER
Adjudication Order: Parish Kirit Bhai Patel in the matter of Illiquid Stock Options at BSE Page 3 of 15 August 22, 2022 to January 21, 2023. Pursuant to the closure of the SEBI Settlement Scheme, 2022, adjudication proceedings continued against the remaining entities. During the adjudication proceedings, significant number of the remaining entities, at the time of personal hearing, expressed their interest in availing of settlement. Accordingly, SEBI has decided to introduce another Settlement Scheme (“ISO Settlement Scheme, 2024”) in terms of Section 15JB of the SEBI Act, 1992 read with Regulation 26 of the Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018 in the matter of Illiquid Stock Options. The said scheme proposes payment of Settlement Amount as per the details given below: Sr No. Number of Contracts Settlement Amount (Rs.) 1 1-5 1,20,000/- 2 6-50 2,40,000/- 3 51 and above 6,00,000/- base amount + 12,000 per contract
Adjudication Order: Parish Kirit Bhai Patel in the matter of Illiquid Stock Options at BSE Page 4 of 15 10. It is observed that despite being granted the opportunity for Settlement twice, Noticee did not avail the settlement scheme and accordingly, the adjudication proceeding against the Noticee was resumed, and in the interest of natural justice, opportunities of hearing in the matter were granted to the Noticee on June 20, 2023, January 15, 2026, vide hearing notices dated May 19, 2023 and December 15, 2025 respectively. The said Notices were duly delivered to the Noticee through SPAD and emails. Vide the said hearing Notices, Noticee was also provided with an opportunity to submit its reply to the SCN. In response, vide letters December 19, 2024 and February 08, 2025, submitted through emails December 17, 2025, and December 25, 2025, Noticee replied as mentioned below:
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Source: SecMarx — sebi:Order/AK/RK/2025-26/32074. 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.