sebi:Order/BM/JR/2023-24/28910
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Facts / Headnote
Violation of Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations, 2003 held established ex-parte; penalty of Rs. 5,00,000 imposed under Section 15HA of SEBI Act, 1992 payable within 45 days failing recovery under Section 28A.
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
- Navneet Jain HUF
Holding
The Noticee executed 6 non-genuine reversal trades in 1 illiquid stock option contract creating artificial volume, thereby violating Regulations 3(a)-(d), 4(1) and 4(2)(a) of PFUTP Regulations, 2003. 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 Navneet Jain HUF in the matter of trading in Illiquid Stock Options at BSE Page 2 of 18 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 Navneet Jain HUF 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 CENT15MAY 620.00CE 8.67
Adjudication Order in respect of Navneet Jain HUF in the matter of trading in Illiquid Stock Options at BSE Page 4 of 18 to the Noticee regarding the SEBI Settlement Scheme, 2022. The intimation regarding settlement scheme given to the Noticee is as follows: 8.1. SEBI has framed the SEBI Settlement Scheme, 2022 pursuant to the
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Source: SecMarx — sebi:Order/BM/JR/2023-24/28910. 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.