sebi:Order/GR/HK/2023-24/29016

SEBI · SEBI · 2022-03-11 · G. RAMAR, ADJUDICATING OFFICER

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Facts / Headnote

Penalty imposed on Noticee for violation of PFUTP Regulations, 2003

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

• Onion Traders (PAN: ASWPB8921F)

Holding

The Noticee violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003 by executing 116 non-genuine reversal trades in 29 stock options contracts at BSE, creating artificial volume of 60,54,000 units, and a penalty of ₹5,80,000 was imposed under Section 15HA of the SEBI Act, 1992.

Full text

Adjudication Order in respect of Onion Traders in the matter of trading in Illiquid Stock Options at BSE Page 2 of 22 segment of BSE during the IP. Such trades were alleged 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 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 Onion Traders in the matter of trading in Illiquid Stock Options at BSE Page 3 of 22 5. It was inter alia alleged in the SCN that the Noticee had executed 116 non- genuine trades in 29 Stock Options contracts which resulted in artificial volume of total 60,54,000 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:

Adjudication Order in respect of Onion Traders in the matter of trading in Illiquid Stock Options at BSE Page 4 of 22 12 IBRL15SEP55 .00CEW2 9.4 88000 6 88000 100 40 100 68.75 13 IDEA15SEP15 5.00PEW3 9.2 56000 5.05 56000 100 50 100 68.29 14 IOBL15SEP40 .00PE 7.4 152000 4.25 152000 100 35.29 100 57.58 15 KARB15SEP1 05.00CEW3 11.4 38000 7.5 38000 100 100 100 100 16 LNTF15SEP7 5.00PE 10.17 184000 8.05 184000 100 41.67 100 43.81 17 NMDC15SEP 90.00CEW2 13 38000 9.35 38000 100 100 100 100 18 PGCL15SEP1 15.00CEW3 9.29 110000 5.7 110000 100 42.86 100 64.71 19 RCOM15SEP 50.00CEW2 8.2 92000 6.36 92000 100 55.56 100 54.76 20 SOIB15SEP26 .00PE 5.51 252000 3.5 252000 100 100 100 100 21 SYND15SEP7 0.00CEW3 10.27 70000 5.3 70000 100 66.67 100 56.45 22 SYND15SEP9 0.00PE 12.17 86000 8 86000 100 100 100 100 23 SYND15SEP9 0.00PEW3 12.4 68000 8 68000 100 100 100 100 24 TATP15SEP5 0.00CE 11.01 100000 6 100000 100 15.38 100 13.02 25 TATP15SEP5 0.00CEW2 6.52 132000 4.05 132000 100 100 100 100 26 TATP15SEP6 5.00PE 8.16 148000 5.34 148000 100 100 100 100 27 TATP15SEP7 0.00PEW3 10.31 108000 5.7 108000 100 60 100 42.19 28 TATP15SEP7 5.00PEW3 13.98 120000 9.4 120000 100 50 100 53.57 29 VEDL15SEP1 10.00PEW3 14.6 100000 9.78 100000 100 100 100 100

Source: SecMarx — sebi:Order/GR/HK/2023-24/29016. 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.