sebi:Order/AK/RK/2026-27/32342
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Facts / Headnote
Violation established; monetary penalty imposed ex-parte
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
- Nitin Jain
Holding
The Noticee violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations by executing 5 non-genuine reversal trades in 2 illiquid stock option contracts creating artificial volume of 14,52,000 units. A monetary penalty of Rs 5,00,000 under Section 15HA of the SEBI Act was imposed on Nitin Jain.
Full text
Adjudication Order in respect of Nitin Jain in the matter of Illiquid Stock Options on BSE Page 2 of 13 APPOINTMENT OF ADJUDICATING OFFICER
Adjudication Order in respect of Nitin Jain in the matter of Illiquid Stock Options on BSE Page 3 of 13 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 in respect of Nitin Jain in the matter of Illiquid Stock Options on BSE Page 4 of 13 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 01, 2026, and February 06, 2026 vide hearing notices dated May 19, 2023, December 26, 2025, and January 28, 2026 respectively. It may be noted that the delivery of the said hearing notices failed through SPAD. However, the said notices were duly served upon the Noticee through email. Further, the SCN and the said notices could not be affixed at the last known address of the Noticee and hence, hearing notice and SCN was served upon it through public Notice on March 20, 2026, which was in addition to the service of the said SCN and hearing notices through email. The public notice was published in three newspapers, namely, The Hindustan Times (English), and Dainik Jagran (Hindi) in Delhi Edition/Circulation. Vide the said public notice, Noticee was provided with an opportunity to submit reply to the SCN within 14 days of the publication of the said Notice by accessing the same from SEBI website. However, no response was received from the Noticee.
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Source: SecMarx — sebi:Order/AK/RK/2026-27/32342. 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.