sebi:Order/BS/YK/2023-24/29094
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Facts / Headnote
Charges established; monetary penalty imposed ex-parte
Provisions invoked
- s. 11B
- s. 11
- s. 15
- s. 15H
- s. 15J
- s. 28A
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
- Reg. 26
Parties
- Viraat Vyapaar Private Limited
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, and a monetary penalty of Rs. 5,00,000 under Section 15HA of SEBI Act was imposed on Viraat Vyapaar Private Limited.
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 the IP, a total of 2,91,744 trades comprising substantial volume of 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 of vide final Order dated April 05, 2018, without any further directions, observing that the Adjudicating Officer shall continue the proceedings in accordance with the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as the “SEBI Act”) and SEBI (Procedure for Holding and Imposing Penalties) Rules, 1995 (hereinafter referred to as the “Adjudication Rules”) and pass appropriate order on merits.
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 3,76,000 units through 2 non-genuine trades in 1 Stock Option contract. The aforesaid reversal trade is illustrated through the dealings of the Noticee in one contract viz. “JSWE15MAR115.00CE” during the investigation period as follows:
In the matter of dealings in Illiquid Stock Options at BSE Page 4 of 13 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/YK/2023-24/29094. 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.