sebi:Order/KS/AA/2019-20/3690

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

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Facts / Headnote

Penalty of Rs. 8,60,000 imposed on the Noticee under Section 15HA of the SEBI Act 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

• Shri Sanket Lalit Parikh

Holding

The Noticee violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations by executing 181 non-genuine reversal trades in 45 illiquid BSE stock option contracts creating artificial volume of 22,17,000 units. The Noticee is liable to monetary penalty of Rs. 8,60,000 under Section 15HA of the SEBI Act.

Full text

Page 2 of 18 crore units or 54.68% of the total market volume in stock options segment of BSE during the Investigation Period. It was observed that Shri Sanket Lalit Parikh (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 18 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 181 non genuine trades in 45 Stock Options contracts which resulted in artificial volume of total 22,17,000 units. The Noticee made a profit of approx. Rs. 3,88,61,350 by executing non genuine trades during the I.P. Summary of dealings of the Noticee in 45 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 ADEL15APR640.00CEW1 8.48 69000 40.48 69000 100% 67% 100% 90% 2 ALBK15FEB85.00CE 13.54 24000 32.53 24000 100% 100% 100% 100% 3 AMTK15AUG90.00CE 37.28 40000 72.90 40000 100% 80% 100% 83% 4 AMTK15AUG95.00CE 28.25 18000 65.20 18000 100% 100% 100% 100% 5 AMTK15JUL90.00CE 30.80 16000 88.80 16000 100% 50% 100% 50% 6 AMTK15JUL95.00CE 32.40 8000 75.00 8000 100% 60% 100% 80% 7 AMTK15MAR100.00CEW3 31.65 12000 72.65 12000 100% 100% 100% 100% 8 ARVI15JUL205.00CE 12.03 8000 29.80 8000 100

Page 4 of 18 19 CARN15FEB210.00CEW3 26.02 43000 59.49 43000 100% 57% 100% 68% 20 CARN15MAR210.00CE 23.75 6000 55.30 6000 100% 50% 100% 19% 21 CARN15MAR210.00CEW1 26.14 83000 60.38 83000 100% 57% 100% 73% 22 CARN15MAR210.00CEW2 22.29 83000 80.94 83000 100% 67% 100% 28% 23 CARN15MAR210.00CEW3 23.50 7000 54.55 7000 100% 50% 100% 26% 24 CRGL15AUG140.00CE 12.90 12000 32.00 12000 100% 40% 100% 46% 25 DISH15FEB40.00CE 22.20 4000 51.70 4000 100% 100% 100% 100% 26 DISH15MAR55.00CEW1 18.50 20000 41.45 20000 100% 100% 100% 100% 27 EXID15MAR155.00CEW2 13.75 24000 30.75 24000 100% 50% 100% 60% 28 HXTL15APR220.00CEW1 36.30 22000 84.00 22000 100% 50% 100% 35% 29 HXTL15MAR175.00CE 60.35 6000 140.00 6000 100% 50% 100% 33% 30 HXTL15MAR210.00CEW3 42.00 18000 96.45 18000 100% 50% 100% 60% 31 IDFC15FEB130.00CE 26.00 12000 59.30 12000 100% 29% 100% 60% 32 IDFC15FEB135.00CE 18.17 44000 42.17 44000 100% 100% 100% 100% 33 IDFC15MAR135.00CE 19.07 42000 43.75 42000 100% 100% 100% 100% 34 IDFC15MAR145.00CEW1 13.60 14000 31.70 14000 100% 100% 100% 100% 35 ITCL15MAR300.00CEW2 23.25 18000 53.00 18000 100% 100% 100% 100% 36 JISL15MAR45.00CEW3 12.50 32000 28.15 32000 100% 100% 100% 100% 37 JSPL15MAR125.00CEW2 41.00 6000 86.00 6000 100% 100% 100% 100% 38 JSPL15MAR125.00CEW3 39.00 20000 90.38 20000 100% 100% 100% 100% 39 JSPL15MAR130.00CEW2 36.00 6000 80.00 6000 100% 100% 100% 100% 40 JSPL15MAR150.00CEW3 21.75 18000 50.30 18000 100% 100% 100% 100% 41 JSWE15MAR90.00CEW3 14.50 24000 24.00 24000 100% 33% 100% 6%

Source: SecMarx — sebi:Order/KS/AA/2019-20/3690. 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.