sebi:Order/AS/VC/2024-25/31295
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Facts / Headnote
Violation established ex-parte; monetary penalty imposed
Provisions invoked
- s. 11B
- s. 11
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
- Reg. 26
Parties
- Diwakar Jha
Holding
The Noticee Diwakar Jha violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations by executing non-genuine reversal trades in illiquid stock options at BSE, and a monetary penalty of Rs. 5,00,000 under Section 15HA of SEBI Act was imposed.
Full text
Adjudication Order in respect of Diwakar Jha in the matter of dealings in Illiquid Stock Options at BSE Page 2 of 16 2. Pursuant to investigation by SEBI, it was observed that during IP, a total of 2,91,744 trades comprising substantial 81.38% of all the trades executed in Stock Options of BSE were trades which involved reversal of buy and sell positions by the clients and counterparties in a contract. The investigation revealed that 14,720 entities were involved in executing non-genuine trades in BSE’s Stock Options segment during the investigation period. It was observed that Diwakar Jha (PAN – ADWPJ4692G) (hereinafter referred to as the “Noticee”) was one of the various entities who indulged in execution of reversal trades in stock options segment of BSE during the IP. Such trades were alleged to be non-genuine in nature and created false or misleading appearance of trading in terms of artificial volumes in stock options and therefore were alleged to be manipulative and deceptive in nature. In view of the same, SEBI initiated adjudication proceedings against the Noticee for alleged violation of the provisions of Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”).
Adjudication Order in respect of Diwakar Jha in the matter of dealings in Illiquid Stock Options at BSE Page 3 of 16 penalty should not be imposed on it for the alleged violations of the provisions of Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations.
Adjudication Order in respect of Diwakar Jha in the matter of dealings in Illiquid Stock Options at BSE Page 4 of 16 which made up 49.5 % of total market volume in the said contract during this period.
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Source: SecMarx — sebi:Order/AS/VC/2024-25/31295. 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.