sebi:Order/BM/UR/2021-22/15032
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Facts / Headnote
Violation of Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations, 2003 established; monetary penalty imposed under Section 15HA of SEBI Act, 1992
Provisions invoked
- s. 11B
- s. 11
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 3
- Reg. 2(1)(c)
- Reg. 4(1)
- Reg. 3(a)
- Reg. 4(2)(a)
Parties
- Karuna Retails Pvt. Ltd. (PAN: AADCK3025D)
Holding
The Noticee, Karuna Retails Pvt. Ltd., was held 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 the stock options segment of BSE that created artificial volume of 152,000 units, and a penalty of ₹5,00,000 was imposed under Section 15HA of the SEBI Act, 1992.
Full text
Page 2 of 30 various entities who indulged in execution of reversal trades in stock options segment of BSE during the IP. Such trades were observed 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 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”).
Page 3 of 30 volume of total 152,000 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:
Page 4 of 30 it is alleged that the Noticee generated artificial volume in the above contract. 7. The SCN with reference no. EAD-3/BM/UR/ISO-II/29392/2021 was served on the Noticee via Speed Post Acknowledgement Due (SPAD) dated October 21, 2021 and via email dated October 22, 2021. The proof of service is on record. Noticee vide letter dated November 12, 2021 requested for extension of 7 days to file its reply which was acceded to. Thereafter vide letter dated November 18, 2021, the Noticee submitted its
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Source: SecMarx — sebi:Order/BM/UR/2021-22/15032. 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.