sebi:Order/KS/AA/2019-20/3497
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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
- Sagar Constructions
Holding
The Noticee, Sagar Constructions, was found to have violated regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003 by executing 194 non-genuine reversal trades in 22 stock options contracts, and a penalty of Rs. 5,00,000 was imposed under Section 15HA of the SEBI Act.
Full text
Page 2 of 19 crore units or 54.68% of the total market volume in stock options segment of BSE during the Investigation Period. It was observed that Sagar Constructions (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 19 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 done 194 non genuine trades in 22 Stock Options contracts which resulted in artificial volume of total 24,51,500 units. The Noticee made a profit of approx. Rs. 1,63,31,488 by executing non genuine trades during the I.P. Summary of dealings of the Noticee in 22 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 AMTK15FEB180.00PE 13.15 80000 29.00 80000 100% 100% 100% 100% 2 AUPL15FEB1020.00CE 41.95 7500 93.90 7500 50% 38% 47% 30% 3 BHFL15FEB1200.00PE 22.00 33500 70.00 33500 100% 50% 100% 76% 4 ENGI15FEB200.00CE 2.05 100000 11.00 100000 100% 40% 100% 50% 5 FEDB14OCT130.00CEW2 0.75 60000 3.21 60000 50% 8% 7% 1% 6 HAIL15FEB260.00CE 9.28 85000 19.50 85000 100% 25% 100% 65% 7 HAIL15MAR290.00PE 6.55 82000 18.80 82000 100% 50% 100% 67% 8 HPCL15FEB600.00CE 16.65 23500 42.30 23500 100%
Page 4 of 19 19 STAC15MAR1050.00PE 20.63 21500 56.00 21500 100% 43% 100% 33% 20 SYND15FEB120.00PE 9.00 50000 18.70 50000 100% 67% 100% 12% 21 TMCL15FEB260.00CE 1.50 69000 15.55 69000 100% 40% 100% 48% 22 TMCL15MAR300.00PE 15.40 64000 31.00 64000 100% 100% 100% 100%
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Source: SecMarx — sebi:Order/KS/AA/2019-20/3497. 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.