sebi:Order/BM/JR/2023-24/28357
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Facts / Headnote
Violation established; penalty of ₹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
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
- Reg. 26
Parties
- New Star System Solutions Private Limited
Holding
The Noticee violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003 by executing 38 non-genuine reversal trades in 6 illiquid stock option contracts at BSE, generating artificial volume of 1,504,000 units, and a penalty of ₹5,00,000 was imposed under section 15HA of the SEBI Act, 1992.
Full text
Adjudication Order in respect of New Star System Solutions Private Limited in the matter of trading in Illiquid Stock Options at BSE Page 2 of 18 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 New Star System Solutions Private Limited in the matter of trading in Illiquid Stock Options at BSE Page 3 of 18 S. N o. Contract Name Avg. Buy Rate (Rs) Total Buy Volume (No. of units) Avg. Sell Rate (Rs) Total Sell Volume (No. of units) % of Non Genui ne trades of Notice e in the contra ct to Notice e's Total trades in the Contra ct % of Non Genui ne trades of Notice e in the contra ct to Total trades in the Contra ct % of Artificia l Volume generat ed by Noticee in the contrac t to Noticee' s Total Volume in the Contrac t % of Artificia l Volume generat ed by Noticee in the contrac t to Total Volume in the Contrac t 1 CANB15FEB3 80.00CE 14 150000 26.9 3 150000 100 100 100 100 2 FEDB15FEB1 25.00CE 8.6 102000 19.0 2 102000 100 63.64 100 50 3 GAIL15FEB38 0.00CE 17.9 6 100000 28 100000 100 100 100 100 4 GAIL15FEB39 0.00CE 12.8 2 151000 27.5 151000 100 50 100 43.02 5 HAIL15FEB25 0.00CE 14 101000 13.2 101000 100 20 100 40.08 6 HXTL15FEB2 60.00CE 3 148000 9.67 148000 100 42.86 100 64.91
Adjudication Order in respect of New Star System Solutions Private Limited in the matter of trading in Illiquid Stock Options at BSE Page 4 of 18
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Source: SecMarx — sebi:Order/BM/JR/2023-24/28357. 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.