sebi:Order/AP/VS/2019-20/7270
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Violation established; monetary penalty imposed
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
- Arindam Sekhar Garments Marketing Private Limited (Presently known as Pintail Reality Developers Private Limited)
Holding
The Noticee violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations by executing non-genuine reversal trades in illiquid BSE Stock Options and is liable to a monetary penalty of Rs. 5,00,000 under Section 15HA of the SEBI Act.
Full text
________________________________________________________________________________ Adjudication order in respect of Arindam Sekhar Garments Marketing Pvt. Ltd. in the matter of Illiquid Stock Options at BSE Page 2 of 12 observed that the Noticee, by executing non genuine trades during the relevant period, registered a negative close out difference of ₹2,69,26,100/- approx. The trades entered by the Noticee were reversed 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 51 Stock Options contracts is as follows: Table 1 – Summary of dealings of the Noticee in contracts wherein the Noticee executed non- genuine trades S. N o. Contract Name Avg. Buy Rate (₹) Total Buy Volume (no. of units) Avg. Sell Rate (́₹) Total Sell Volume (no. of units) % of Non Genuin e trades of Noticee in the contract to Noticee ’s Total trades in the Contrac t % of Non Genuine trades of Entity in the contract to Total trades in the Contract % of Artificial Volume generated by Noticee in the contract to Noticee’s Total Volume in the Contract % of Artificial Volume generated by Noticee in the contract to Total Volume in the Contract 1 GAIL15MAR410.00PEW3 30.14 310000 17.20 310000 100% 43% 100% 42% 2 HXTL15MAR250.00CEW3 25.94 412000 13.20 412000 100% 35% 100% 54% 3 OBNK15
________________________________________________________________________________ Adjudication order in respect of Arindam Sekhar Garments Marketing Pvt. Ltd. in the matter of Illiquid Stock Options at BSE Page 3 of 12 e. 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 Arindam Sekhar Garments Marketing Pvt. Ltd. in the matter of Illiquid Stock Options at BSE Page 4 of 12 Noticee calling upon it to show cause as to why an inquiry should not be held against it in terms of rule 4 of the Adjudication Rules and penalty be not imposed under Section 15HA of the SEBI Act for the aforesaid alleged violations. Vide letter dated November 12, 2018, the Noticee had denied the allegation made in SCN and requested for the inspection of the documents in the matter and to provide it copy of the investigation report and trade and order log qua it. Accordingly, the erstwhile AO allowed inspection of documents to the Noticee and forwarded its request for inspection of documents to Enforcement Department. Thereafter, Mr. Jitendra Sarda and Mr. Shashank Bajaj took the inspection of documents on October 09, 2019.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:Order/AP/VS/2019-20/7270. 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.