sebi:Order/GR/HK/2023-24/29094

SEBI · SEBI · 2022-07-26 · G. Ramar, Adjudicating Officer

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Facts / Headnote

Penalty imposed on Noticee for violation of PFUTP Regulations, 2003

Provisions invoked

• s. 15
• s. 19
• s. 11B
• s. 11
• s. 15H
• s. 15J
• s. 15F
• s. 28A

Regulations

• Reg. 4
• Reg. 3
• Reg. 4(1)
• Reg. 3(a)
• Reg. 26

Parties

• Madhulika Rawat

Holding

The Noticee violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003 by executing 30 non-genuine reversal trades in 15 stock options contracts at BSE, generating artificial volume of 2,93,000 units, and a penalty of ₹5,00,000 was imposed under Section 15HA of the SEBI Act, 1992.

Full text

Adjudication Order in respect of Madhulika Rawat in the matter of trading in Illiquid Stock Options at BSE Page 2 of 21 various entities who indulged in execution of reversal trades in stock options 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 Madhulika Rawat in the matter of trading in Illiquid Stock Options at BSE Page 3 of 21 4. A Show Cause Notice dated August 30, 2022 (hereinafter referred to as “SCN”) was issued to the Noticee under Rule 4(1) of the Adjudication Rules to show-cause as to why an inquiry should not be initiated against her and why penalty should not be imposed under Section 15HA of the SEBI Act, 1992 for the violations alleged to have been committed by the Noticee.

Adjudication Order in respect of Madhulika Rawat in the matter of trading in Illiquid Stock Options at BSE Page 4 of 21 8 MCRS15MAR 200.00CEW2 53.4 20000 42.6 20000 100 100 100 100 9 RCAP15MAR 400.00CEW3 114 7500 86 7500 100 50 100 36.59 10 RECL15MAR 300.00CEW3 54.7 9000 43.5 9000 100 100 100 100 11 RLNF15MAR 400.00CEW3 97.5 10000 76 10000 100 100 100 100 12 SUNT15MAR 390.00CEW2 48.5 11000 28.3 11000 100 33.33 100 3.86 13 UPHL15MAR 370.00CEW3 47.8 14000 33.5 5 14000 100 50 100 48.28 14 VOLT15MAR 250.00CEW3 51.25 10000 41 10000 100 50 100 33.33 15 YESB15MAR 760.00CEW2 89.8 7500 55.5 7500 100 100 100 100

Source: SecMarx — sebi:Order/GR/HK/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.