sebi:Order/KS/AA/2019-20/3407
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Provisions invoked
- s. 24
- s. 15
- s. 19
- s. 15H
- s. 15I
- s. 15J
- s. 15F
- s. 28A
- s. 15I(1)
Regulations
- Reg. 3
- Reg. 2(1)(c)
- Reg. 200
- Reg. 3(a)
Parties
- Rector Investments Private Limited
Holding
No final finding on liability or penalty is contained in the excerpt; the Adjudicating Officer holds that the principles of natural justice have been complied with in the present matter.
Full text
Page 2 of 43 crore units or 54.68% of the total market volume in stock options segment of BSE during the Investigation Period. It was observed that Rector Investments 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 43 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 2,319 non genuine trades in 118 Stock Options contracts which resulted in artificial volume of total 2,15,55,500 units. The Noticee made a profit of approx. Rs. 3,06,50,831 by executing non genuine trades during the I.P. Summary of dealings of the Noticee in 118 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 ABNV15APR1650.00CE 32.61 76000 54.68 80000 93% 78% 96% 69% 2 ABNV15MAR1650.00PE 16.03 81000 29.13 81000 100% 100% 100% 100% 3 ACCL15APR1560.00CE 40.56 67000 69.69 67000 100% 82% 100% 30% 4 ACCL15MAR1560.00CE 24.88 49250 33.73 49250 100% 47% 100% 14% 5 ACCL15MAR1620.00PE 32.36 58750 24.96 58750 100% 76% 100% 20% 6 ADEL15APR600.00CE 24.97 74000 34.42 74000 100% 100% 100% 100% 7 ADEL15APR600.00PE 20.89 55000 24.11 55000 100% 100% 100% 100% 8 ADEL15MAR580.00CE 18.
Page 4 of 43 17 BOIL15MAR200.00CE 5.99 265000 8.79 265000 100% 100% 100% 100% 18 BPCL15MAR740.00PE 0.08 60000 1.68 60000 100% 50% 100% 10% 19 CANB15MAR380.00CE 2.53 112000 3.82 112000 100% 86% 100% 51% 20 CENT15APR640.00PE 30.52 100000 42.91 100000 100% 100% 100% 100% 21 CENT15MAR500.00PE 23.80 59000 19.33 59000 100% 100% 100% 100% 22 CENT15MAR540.00CE 20.13 61000 25.73 61000 100% 61% 100% 12% 23 CENT15MAR540.00PE 14.11 165000 5.62 165000 100% 74% 100% 28% 24 CENT15MAR560.00CE 8.45 67000 12.98 67000 100% 52% 100% 8% 25 CENT15MAR560.00PE 6.04 60000 14.93 60000 100% 8% 100% 4% 26 CENT15MAR580.00PE 21.17 45000 9.33 45000 100% 16% 100% 9% 27 CENT15MAR620.00CE 6.04 75000 3.74 75000 100% 71% 100% 34% 28 CESC15FEB580.00CE 15.50 30000 7.25 30000 100% 83% 100% 50% 29 CESC15MAR600.00CE 17.30 45000 11.33 45000 100% 35% 100% 10% 30 CESC15MAR600.00PE 5.68 140500 8.94 140500 100% 51% 100% 25% 31 CIPL15MAR700.00CE 6.03 29500 13.15 29500 100% 33% 100% 6% 32 CIPL15MAR720.00PE 9.45 88500 17.21 88500 100% 87% 100% 26% 33 COAL15FEB370.00CE 19.00 15000 11.00 15000 100% 10% 100% 3% 34 COAL15FEB380.00CE 9.16 72000 4.88 72000 100% 91% 100% 37% 35 COLG15APR2100.00CE 17.81 114500 34.06 114500 100% 100% 100% 100% 36 DIVI15APR1800.00CE 55.64 65000 80.05 65000 96% 65% 100% 86% 37 DRRL15APR3400.00CE 119.49 130000 151.68 130000 100% 87% 100% 71% 38 GRSM15APR3600.00PE 82.61 120000 120.20 120000 100% 65% 100% 57% 39 HDBK15APR1020.00PE 14.58 130000 28.44 130000 100% 80% 100% 63% 40 HDBK15FEB1080.00CE 21.88 52
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Source: SecMarx — sebi:Order/KS/AA/2019-20/3407. 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.