sebi:Order/BM/UR/2022-23/15941
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Facts / Headnote
Violation established; monetary penalty of Rs 5,00,000 imposed under Section 15HA of SEBI Act, 1992
Provisions invoked
- s. 15
- s. 19
- s. 11B
- s. 11
- 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
- Karan Singh Dhillon
Holding
The Noticee executed 2 non-genuine reversal trades in 1 BSE stock options contract (UCOB15MAR50.00CE) creating artificial volume of 56,000 units, violating Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations, 2003, and is liable to a penalty of Rs 5,00,000 under Section 15HA of the SEBI Act, 1992.
Full text
Page 2 of 26 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 26 S. N o. Contract Name Avg. Buy Rate (Rs) Total Buy Volu me (No. of units) Av g. Sel l Rat e (Rs ) Total Sell Volu me (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 Contr act % of Artifici al Volume generat ed by Noticee in the contrac t to Noticee 's Total Volume in the Contra ct % of Artifici al Volume generat ed by Noticee in the contrac t to Total Volume in the Contra ct 1 UCOB15MAR50. 00CE 10.45 28000 17.9 5 28000 100 3.39 100 2.16
Page 4 of 26 dated October 20, 2021. The proof of service is on record. Noticee vide letter dated November 09, 2021 submitted its reply to the Show Cause Notice, in which it denied all allegations levelled against it and sought the Investigation Report and all the relevant records during the course of captioned proceedings..
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Source: SecMarx — sebi:Order/BM/UR/2022-23/15941. 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.