sebi:Order/BM/DS/2023-24/25958
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Facts / Headnote
Penalty imposed on Noticee for violation of PFUTP Regulations, 2003
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
- Sanchita Roy
Holding
The Noticee was found to have violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003 by executing non-genuine reversal trades in illiquid stock options at BSE, and a penalty of ₹5,00,000 was imposed under Section 15HA of the SEBI Act, 1992.
Full text
Adjudication Order in respect of Sanchita Roy in the matter of trading in Illiquid Stock Options at BSE Page 2 of 20 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, 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, 2003”).
Adjudication Order in respect of Sanchita Roy in the matter of trading in Illiquid Stock Options at BSE Page 3 of 20 5. It was inter alia alleged in the SCN that the Noticee had executed 4 non- genuine trades in 2 Stock Options contracts which resulted in artificial volume of total 63000 units. Summary of dealings of the Noticee in the said Options contracts, in which the Noticee allegedly executed non-genuine trades during the I.P, is as follows:
Adjudication Order in respect of Sanchita Roy in the matter of trading in Illiquid Stock Options at BSE Page 4 of 20 the total volume from the market in said contracts was in the range of 4.89% to 32.5%. Therefore, the Noticee allegedly generated artificial volume in the above contracts.
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Source: SecMarx — sebi:Order/BM/DS/2023-24/25958. 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.