sebi:Order/KS/AA/2019-20/2995
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Facts / Headnote
Violation established; penalty of Rs. 5,00,000 imposed under Section 15HA of SEBI Act
Provisions invoked
- s. 15
- s. 19
- s. 11
- s. 15H
- s. 15I
- s. 15J
- s. 15F
- s. 15I(1)
Regulations
- Reg. 3
- Reg. 3(a)
Parties
- Sandeep Stocks Private Limited (PAN: AAICS1108A)
Holding
The Noticee violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations by executing non-genuine reversal trades in BSE stock options creating artificial volume, and is liable to monetary penalty of Rs. 5,00,000 under Section 15HA of SEBI Act.
Full text
Page 2 of 29 BSE during the Investigation Period. It was observed that Sandeep Stocks Private Limited (PAN: AAICS1108A) and Sandeep Stock Private Limited (PAN: ADUPS5831J) were among 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 Sandeep Stocks Private Limited (PAN: AAICS1108A) and Sandeep Stock Private Limited (PAN: ADUPS5831J) 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 not be initiated against them and why penalty should not be imposed upon them under Section 15HA of the SEBI Act for the violations alleged to have been committed by them.
Page 4 of 29 6. From the above table, following was noted as regards to dealings of Sandeep Stocks Private Limited (PAN: AAICS1108A): (a) It had executed non genuine trades in 13 contracts, wherein all of its trades in the said 13 contracts were non genuine trades. (b) No. of non genuine trades of Sandeep Stocks Private Limited (PAN: AAICS1108A) has significantly contributed to the total no. of trades from the market in the above contracts, as 6% to 100% of the trades that happened in the aforementioned contracts were due to non-genuine trades executed by it. (c) A substantial 100% of volume generated by it in each of the above contracts was artificial volume, and further artificial volume generated by it also contributed to significant 20% to 100% of the total volume from the market in said contracts. (d) Non genuine trades executed by it in above contracts had significant differential in buy rates and sell rates considering that the trades were reversed on same day.
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Source: SecMarx — sebi:Order/KS/AA/2019-20/2995. 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.