sebi:Order/GR/HK/2023-24/29107

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. 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

• Mamta Gupta (PAN: AAQPG8222J)

Holding

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

Full text

Adjudication Order in respect of Mamta Gupta in the matter of trading in Illiquid Stock Options at BSE Page 2 of 20 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 Mamta Gupta in the matter of trading in Illiquid Stock Options at BSE Page 3 of 20 4. A Show Cause Notice dated September 05, 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 Mamta Gupta in the matter of trading in Illiquid Stock Options at BSE Page 4 of 20 (a) The Noticee had executed alleged non genuine trades in 3 contracts, wherein all the trades of Noticee in the said contracts were allegedly non-genuine trades. (b) No. of alleged non-genuine trades of the Noticee had significantly contributed to total no. of trades ranging from 16.67% to 100% in the market in the above contracts, as 16.67% to 100% of the trades that happened in the said contracts were due to non-genuine trades executed by the Noticee. (c) 100% of volume generated by Noticee in the above contracts was alleged to be artificial volume and further, the percentage of alleged artificial volume generated by the Noticee in the above contracts to the total volume from the market in said contracts was in the range of 10.87% to 100%. Therefore, the Noticee allegedly generated artificial volume in the above contract.

Source: SecMarx — sebi:Order/GR/HK/2023-24/29107. 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.