sebi:Order/KS/AA/2018-19/2381

SEBI · SEBI · 2018-04-03 · K Saravan, Chief General Manager & Adjudicating Officer

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Facts / Headnote

Violation of PFUTP Regulations established; monetary penalty imposed under Section 15HA of the SEBI Act

Provisions invoked

• s. 15
• s. 19
• s. 15H
• s. 15I
• s. 15J
• s. 15F
• s. 15I(1)

Regulations

• Reg. 3
• Reg. 4(2)(a)
• Reg. 3(a)
• Reg. 3(b)
• Reg. 3(c)
• Reg. 2(l)(c)

Parties

• Renesola India Private Limited

Holding

The Noticee was found to have violated regulations 3(a), 3(b), 3(c), 3(d), 4(1) and 4(2)(a) of the PFUTP Regulations by executing 91 non-genuine reversal trades in 35 stock option contracts at BSE, generating artificial volume of 1,94,47,500 units, and a monetary penalty was imposed under Section 15HA of the SEBI Act.

Full text

Page 2 of 29 crore units or 54.68% of the total market volume in stock options segment of BSE during the Investigation Period. It was observed that Renesola India Private Limited (hereinafter referred to as the “Noticee”) was one of the various entities which indulged in execution of reversal trades in stock options segment of BSE during the Investigation Period. Such trades were observed to be non-genuine in nature and created false or misleading appearance of trading in terms of artificial volumes in stock options and therefore alleged to be manipulative, deceptive in nature. 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”).

Page 3 of 29 of the SEBI Act for the violations alleged to have been committed by the Noticee. 5. It was inter alia alleged in the SCN that the Noticee had executed 91 non genuine trades in 35 Stock Options contracts which resulted in artificial volume of total 1,94,47,500 units. The Noticee made a loss of approx. Rs. 2,83,54,750 by executing non genuine trades during the I.P. Summary of dealings of the Noticee in 35 Stock Options contracts, in which the Noticee allegedly executed non genuine trades during the I.P, is as follows: S. No. Contract Name Avg. Buy Rate (Rs.) Total Buy Volume (No. of units) Avg. Sell Rate Total Sell Volume (No. of units) % of Non Genuine trades of Noticee in the contract to Noticee's Total trades in the Contract % of Non Genuine trades of Noticee in the contract to Total trades in the Contract % of Artificial Volume generated by Noticee in the contract to Noticee's Total Volume in the Contract % of Artificial Volume generated by Noticee in the contract to Total Volume in the Contract 1 ADPW15MAR55.00CEW2 1.20 816000 0.10 816000 100% 17% 100% 29% 2 ADPW15MAR55.00PEW2 3.80 1616000 1.95 1616000 100% 18% 100% 27% 3 ADPW15MAR60.00CEW2 1.45 432000 0.10 432000 100% 67% 100% 27% 4 ANBK15FEB85.00CE 4.20 536000 1.40 536000 100% 50% 100% 39% 5 ARVI15MAR280.00PE 2.95 125000 0.15 125000 100% 12% 100% 10% 6 ARVI15MAR340.00CE 3.00 350000 2.00 350000 100% 50% 100% 58% 7 AXIS15MAR660.00CE 8.00 89500 0.20 89500 100% 33% 100% 18% 8 HDBK15FEB1020.00CE 67.00 10250 38.0

Page 4 of 29 19 JSWE15MAR115.00CE 5.80 688000 2.90 688000 100% 12% 100% 16% 20 JSWE15MAR115.00CEW3 4.05 300000 7.40 300000 100% 10% 100% 13% 21 KARB15MAR130.00CEW3 4.40 416000 2.00 416000 100% 25% 100% 35% 22 KARB15MAR130.00PE 4.25 256000 0.35 256000 100% 13% 100% 13% 23 KARB15MAR135.00CE 3.40 322000 0.30 322000 100% 10% 100% 12% 24 KARB15MAR135.00PEW2 3.25 178000 1.00 178000 100% 50% 100% 50% 25 KARB15MAR140.00CEW2 2.05 244000 0.25 244000 100% 15% 100% 20% 26 NMDC15FEB135.00CE 13.25 142000 6.25 142000 100% 33% 100% 33% 27 PFCL15MAR280.00CE 13.70 95000 9.50 95000 100% 6% 100% 6% 28 PFCL15MAR280.00PE 9.50 144000 1.50 144000 100% 5% 100% 4% 29 PFCL15MAR300.00CE 6.00 80000 1.00 80000 100% 5% 100% 3% 30 PFCL15MAR310.00CE 4.00 114000 0.50 114000 100% 8% 100% 8% 31 PFCL15MAR320.00CE 3.75 320000 1.25 320000 100% 18% 100% 22% 32 RLNF15MAR440.00PE 5.00 56000 1.00 56000 100% 25% 100% 25% 33 RLNF15MAR560.00CE 3.60 64000 0.10 64000 100% 100% 100% 100% 34 UCOB15MAR65.00CEW3 7.90 552000 4.30 552000 100% 100% 100% 100% 35 YESB15FEB680.00CE 133.00 10000 83.00 10000 100% 33% 100% 26%

Source: SecMarx — sebi:Order/KS/AA/2018-19/2381. 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.