sebi:Order/BM/GN/2023-24/25978
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Facts / Headnote
Penalty imposed on the 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
- Karwa Securities Limited
Holding
The Adjudicating Officer held that Karwa Securities Limited 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 imposed a penalty of Rs. 5,00,000 under section 15HA of the SEBI Act, 1992.
Full text
Adjudication Order in respect of Karwa Securities Limited 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 Karwa Securities Limited 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 GRSM15AP R3650.00CE
Adjudication Order in respect of Karwa Securities Limited in the matter of trading in Illiquid Stock Options at BSE P a g e | 4 of 18
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Source: SecMarx — sebi:Order/BM/GN/2023-24/25978. 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.