sebi:Order/KS/AA/2019-20/3406

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

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Adjudication proceedings initiated against the Noticee vide SCN dated September 21, 2018 cannot be proceeded with; matter disposed of.

Provisions invoked

• s. 19
• s. 15H
• s. 15I
• s. 15J
• s. 15I(1)
• s. 279
• s. 446
• s. 33(5)
• s. 391
• s. 238
• s. 63
• s. 34

Regulations

• Reg. 3(a)

Parties

• Rotomac Global Private Limited

Holding

The adjudication proceedings initiated by SEBI against Rotomac Global Private Limited vide SCN dated September 21, 2018 cannot be proceeded with, as the Noticee is under liquidation and leave of the NCLT has not been obtained as required.

Full text

Page 2 of 13 crore units or 54.68% of the total market volume in stock options segment of BSE during the Investigation Period. It was observed that Rotomac Global 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 13 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 451 non genuine trades in 169 Stock Options contracts which resulted in artificial volume of total 1,34,70,000 units. The Noticee made a loss of approx. Rs. 3,44,56,675 by executing non genuine trades during the I.P. Summary of dealings of the Noticee in 169 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 ACCL15APR1500.00CE 48.00 15000 28.00 15000 100% 50% 100% 55% 2 ACCL15APR1500.00PE 14.00 30000 4.00 30000 100% 33% 100% 55% 3 ACCL15APR1560.00PE 41.00 16500 23.00 16500 100% 20% 100% 7% 4 ACCL15APR1590.00CEW1 12.75 20000 3.50 20000 100% 17% 100% 21% 5 ACCL15APR1620.00PE 55.00 3000 31.05 3000 100% 25% 100% 4% 6 ACCL15APR1620.00PEW4 102.05 2000 75.25 2000 100% 100% 100% 100% 7 ADEL15APR600.00PEW2 8.75 50000 4.00 50000 100% 25% 100% 42% 8 ADPW15APR44.00CE 4.50 104000

Page 4 of 13 17 ARVI15APR270.00PE 4.00 20000 1.00 20000 100% 29% 100% 4% 18 AUPL15APR1170.00CEW1 18.75 20000 11.00 20000 100% 14% 100% 15% 19 AUPL15APR1200.00CE 42.70 20000 25.00 20000 100% 20% 100% 31% 20 AUPL15APR1200.00PE 93.80 20000 72.00 20000 100% 25% 100% 29% 21 AXIS15APR560.00PE 18.10 5000 10.05 5000 100% 12% 100% 3% 22 AXIS15APR560.00PEW2 10.75 40000 6.25 40000 100% 20% 100% 22% 23 BAJT15APR2040.00PE 27.55 2000 12.25 2000 100% 9% 100% 1% 24 BAJT15APR2040.00PEW2 54.75 25000 36.00 25000 100% 25% 100% 38% 25 BATA15APR1170.00CEW1 12.75 20000 4.00 20000 100% 13% 100% 12% 26 BHEL15APR240.00PE 10.55 20000 4.55 20000 100% 50% 100% 25% 27 BHFL15APR1260.00PE 10.05 5000 3.00 5000 100% 50% 100% 20% 28 BHFL15APR1320.00CEW1 7.75 40000 1.00 40000 100% 17% 100% 30% 29 BHRT15APR390.00PEW2 5.75 50000 2.00 50000 100% 25% 100% 26% 30 BHRT15APR410.00PEW4 6.25 80000 1.33 80000 100% 100% 100% 100% 31 BIOC15APR440.00CEW1 3.90 40000 0.70 40000 100% 14% 100% 18% 32 BIOC15APR470.00PE 10.30 35500 3.30 35500 100% 100% 100% 100% 33 BIOC15APR480.00CE 8.59 35000 1.59 35000 100% 100% 100% 100% 34 BIOC15APR480.00CEW4 6.65 40000 1.70 40000 100% 100% 100% 100% 35 BOBL15APR155.00CE 13.00 50000 8.00 50000 100% 20% 100% 20% 36 BOBL15APR155.00PE 4.25 50000 2.00 50000 100% 100% 100% 100% 37 BOBL15APR160.00CE 8.60 50000 5.00 50000 100% 12% 100% 12% 38 BOBL15APR160.00PE 6.50 50000 3.00 50000 100% 100% 100% 100% 39 BOBL15APR165.00CE 6.90 50000 3.05 50000 100% 25% 100% 20% 40 BOBL15APR170.00CE 4.50 50000 2.00 5

Source: SecMarx — sebi:Order/KS/AA/2019-20/3406. 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.