sebi:Order/BS/RG/2023-24/28221
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Facts / Headnote
Violation established; monetary penalty of Rs. 5,00,000 imposed under Section 15HA of SEBI Act
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 28A
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
- Reg. 26
Parties
- Ms. Premlata Kejriwal
Holding
The Noticee violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations by executing non-genuine reversal trades in illiquid stock options. A monetary penalty of Rs. 5,00,000 was imposed under Section 15HA of the SEBI Act.
Full text
In the matter of dealings in Illiquid Stock Options at BSE Page 2 of 13 2. Pursuant to investigation by SEBI, it was observed that during IP, total 2,91,744 trades comprising substantial 81.38% of all the trades executed in Stock Options of BSE were trades which involved reversal of buy and sell positions by the clients and counterparties in a contract. The investigation revealed that 14,720 entities were involved in executing non-genuine trades in BSE’s Stock Options segment during the investigation period. The proceedings initiated against a first set of 59 entities, were disposed off vide final Order dated April 05, 2018, without any further
In the matter of dealings in Illiquid Stock Options at BSE Page 3 of 13 5. It was alleged that the Noticee was one of the entities that indulged in creating artificial volume of 84,000 units through 2 non-genuine trades in 1 Stock Option contract. The aforesaid reversal trade occurred through the dealings of the Noticee in one contract viz. “UCOB15MAR60.00PE” during the investigation period is illustrated as follows:
In the matter of dealings in Illiquid Stock Options at BSE Page 4 of 13 class of person. The terms of settlement should be attractive so that it could attract the noticees/entities to come forward and settle the matter which will ameliorate the harassment of penalty proceedings to the noticees and at the same time would help to clear the backlog of these pending matters before various AOs”.
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Source: SecMarx — sebi:Order/BS/RG/2023-24/28221. 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.