sebi:Order/BM/GN/2023-24/25721

SEBI · SEBI · 2022-03-10 · Barnali Mukherjee, Adjudicating Officer

Reviewed by Varun Matlani, Advocate — Securities Lawyer practicing in SAT and SEBI

Facts / Headnote

Violation established; penalty of Rs 5,00,000 imposed under Section 15HA of the SEBI Act, 1992

Provisions invoked

• s. 11B
• s. 11
• s. 15
• s. 19
• s. 15H
• s. 15J
• s. 15F
• s. 28A

Regulations relied on

• SEBI (PFUTP) Regulations, 2003 — 3(a)

Parties

• Nirmal Kumar Chopra HUF

Holding

The Noticee violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003 by executing 12 non-genuine reversal trades in 5 illiquid stock option contracts at BSE generating artificial volume, and a monetary penalty of Rs 5,00,000 under Section 15HA of the SEBI Act, 1992 was imposed.

Full text

Adjudication Order in respect of Nirmal Kumar Chopra HUF in the matter of trading in Illiquid Stock Options at BSE P a g e | 2 of 18 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 Nirmal Kumar Chopra HUF in the matter of trading in Illiquid Stock Options at BSE P a g e | 3 of 18 S. N o. Contract Name Avg. Buy Rate (Rs) Total Buy Volum e (No. of units) Avg. Sell Rate (Rs) Total Sell Volum e (No. of units) % of Non Genui ne trades of Notic ee in the contr act to Notic ee's Total trades in the Contr act % of Non Genui ne trades of Notic ee in the contr act to Total trades in the Contr act % of Artifici al Volum e genera ted by Notice e in the contra ct to Notice e's Total Volum e in the Contra ct % of Artifici al Volum e genera ted by Notice e in the contra ct to Total Volum e in the Contra ct 1 ALLD15MAR 45.00CE 25 14400 0 14.6 14400 0 100 10 100 13.43 2 ALLD15MAR 45.00PEW1 0.05 34400 0 1.45 34400 0 100 33.33 100 53.09 3 DLFL15MAR 160.00PE 3.55 19000 0 0.15 19000 0 100 30.77 100 52.49 4 LNTF15MAR 100.00CEW1 3.65 28000 0.05 28000 100 25 100 5.83 5 NHPC15MA R30.00CEW 1 0.05 50000 0 1.4 50000 0 100 12.5 100 38.17

Adjudication Order in respect of Nirmal Kumar Chopra HUF in the matter of trading in Illiquid Stock Options at BSE P a g e | 4 of 18

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