sebi:Order/GR/PU/2021-22/14761
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Facts / Headnote
Violation established; penalty of Rs 5,00,000 imposed under Section 15HA of the SEBI Act
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 2
- Reg. 3(a)
Parties
- Gleam Finance Private Limited
Holding
The Noticee 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 creating artificial volume. A monetary penalty of Rs 5,00,000 under Section 15HA of the SEBI Act was imposed on the Noticee.
Full text
Page 2 of 18 segment during the investigation period. 2. Pursuant to the investigation, it was observed that a total of 2,91,643 trades comprising of a substantial 81.38% of all the trades executed in the stock options segment of BSE, during the IP, were non genuine trades. The aforesaid non- genuine trades resulted into creation of artificial volume to the tune of 826.21crore units or 54.68% of the total market volume in the stock options segment of BSE during the IP. It was observed that Gleam Finance Private Limited (PAN- AAACG5200F) (hereinafter referred to as the “Noticee”) was one of the various entities who had indulged in the execution of reversal trades in the stock options segment of BSE, during the IP. Such trades were observed to be non-genuine in nature, creating false or misleading appearance of trading in terms of artificial volumes in stock options and therefore were alleged to be manipulative as well as deceptive. In view of the same, SEBI initiated adjudication proceedings against the Noticee for 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”).
Page 3 of 18 Options”. 4. Accordingly, a Settlement Scheme was framed under the SEBI (Settlement Proceedings) Regulations, 2018, which provided one-time opportunity for settlement of proceedings in the Illiquid Stock Options matter. The said scheme was kept open from August 01, 2020 till December 31, 2020. Adjudication proceedings were initiated against those entities who had not availed of the opportunity of settlement.
Page 4 of 18 violations specified in the SCN. 7. The SCN with reference number SEBI/HO/EAD/EAD4/P/OW/2021/28217/1 was issued to the Noticee via Speed Post Acknowledgement Due (SPAD) and via email dated October 13, 2021, both of which were duly delivered to the Noticee. Vide e-mail dated October 31, 2021, the Noticee had sought for extension of time to file its reply in the matter. From the material available on record, it is observed that the Noticee has not submitted its reply in the matter till date.
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Source: SecMarx — sebi:Order/GR/PU/2021-22/14761. 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.