sebi:Order/KS/AA/2019-20/3329
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Facts / Headnote
Penalty imposed on the Noticee for violation of PFUTP Regulations
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15I
- s. 15J
- s. 15F
- s. 28A
- s. 15I(1)
Regulations
- Reg. 3
- Reg. 3(a)
Parties
- Roopam Steel Rolling Mills
Holding
The Adjudicating Officer held that Roopam Steel Rolling Mills violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations by executing 54 non-genuine reversal trades in 18 stock option contracts on BSE that created artificial volume, and imposed a penalty of Rs. 5,00,000 under Section 15HA of the SEBI Act.
Full text
Page 2 of 24 crore units or 54.68% of the total market volume in stock options segment of BSE during the Investigation Period. It was observed that Roopam Steel Rolling Mills (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 24 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 54 non genuine trades in 18 Stock Options contracts which resulted in artificial volume of total 54,74,500 units. The Noticee made a profit of approx. Rs. 3,00,41,150 by executing non genuine trades during the I.P. Summary of dealings of the Noticee in 18 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 ACCL15MAR1560.00CE 7.00 211500 21.00 211500 100% 32% 100% 60% 2 ACCL15MAR1560.00PE 0.50 123000 16.50 123000 100% 100% 100% 100% 3 AMBC15MAR240.00CE 7.00 237000 14.55 237000 100% 32% 100% 27% 4 AXIS15MAR560.00CE 41.75 17000 82.75 17000 100% 14% 100% 3% 5 AXIS15MAR580.00CE 27.70 12500 56.00 12500 100% 33% 100% 7% 6 AXIS15MAR620.00PE 10.00 16000 32.00 16000 100% 33% 100% 24% 7 BAJT15APR2100.00CE 36.00 154500 58.00 154500 100% 4% 100% 42% 8 CENT15MAR580.00CE 2.00 119000
Page 4 of 24 17 IDFC15MAR170.00CE 1.70 500000 4.50 500000 100% 40% 100% 46% 18 JSWE15MAR110.00CEW3 2.10 272000 5.75 272000 100% 14% 100% 12%
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Source: SecMarx — sebi:Order/KS/AA/2019-20/3329. 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.