sebi:Order/AP/AS/2019-20/6819

SEBI · SEBI · Amit Pradhan, Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Violation of Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations established; monetary penalty of ₹5,00,000 imposed under Section 15HA of the SEBI Act

Provisions invoked

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

Regulations

• Reg. 3
• Reg. 2(1)(c)
• Reg. 3(a)

Parties

• Akash Ispat Private Limited

Holding

The Adjudicating Officer held that Akash Ispat Private Limited indulged in non-genuine reversal trades in 14 illiquid Stock Options contracts on BSE, creating false or misleading appearance of trading, thereby violating Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations, and imposed a monetary penalty of ₹5,00,000 under Section 15HA of the SEBI Act.

Full text

_________________________________________________________________________________ Adjudication order in respect of Akash Ispat Private Limited in the matter of Illiquid Stock Options at BSE Page 2 of 16 on the same day within a very short span of time with same counterparty at a substantial price difference without any basis for significant change in the contract price which indicates that these trades are artificial and are non-genuine in nature. The summary of dealings of Noticee in such 14 Stock Options contracts is as follows:

_________________________________________________________________________________ Adjudication order in respect of Akash Ispat Private Limited in the matter of Illiquid Stock Options at BSE Page 3 of 16 Noticee, also contributed significantly to the extent of 11% to 100% of the total volume in said contracts in the market. c. These alleged non genuine trades, executed by Noticee in above contracts, had significant differential in buy rates and sell rates considering that the trades were reversed on same day. d. The Noticee has allegedly engaged in the non-genuine transactions in the option segment of BSE for the purpose creating false appearance of trading.

_________________________________________________________________________________ Adjudication order in respect of Akash Ispat Private Limited in the matter of Illiquid Stock Options at BSE Page 4 of 16 (d) engage in any act, practice, course of business which operates or would operate as fraud or deceit upon any person in connection with any dealing in or issue of securities which are listed or proposed to be listed on a recognized stock exchange in contravention of the provisions of the Act or the rules and the regulations made there under.

Source: SecMarx — sebi:Order/AP/AS/2019-20/6819. 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.