sebi:Order/KS/AA/2019-20/3802
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Facts / Headnote
Penalty of Rs. 5,20,000 imposed under Section 15HA of the SEBI Act
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15I
- s. 15J
- s. 15F
- s. 28A
- s. 15I(1)
Regulations
- Reg. 4
- Reg. 3
- Reg. 6
- Reg. 3(a)
- Reg. 3(d)
- Reg. 3(b)
- Reg. 3(c)
Parties
- Rockland Media and Communication Private Limited
Holding
The Noticee executed 58 non-genuine reversal trades in 27 stock option contracts creating artificial volume in violation of Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations and is liable to monetary penalty under Section 15HA of the SEBI Act.
Full text
Page 2 of 20 crore units or 54.68% of the total market volume in stock options segment of BSE during the Investigation Period. It was observed that Rockland Media and Communication 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 20 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 58 non genuine trades in 27 Stock Options contracts which resulted in artificial volume of total 1,06,21,250 units. The Noticee a profit of approx. Rs. 1,15,17,191 by executing non genuine trades during the I.P. Summary of dealings of the Noticee in 27 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 ADPW15JUN26.00CE 3.95 8000 3.90 8000 100% 67% 100% 14% 2 ADPW15MAY34.00CEW3 5.00 84000 8.00 84000 100% 25% 100% 21% 3 ADPW15MAY46.00PEW3 2.60 176000 4.00 176000 100% 50% 100% 64% 4 ANBK15MAY70.00CEW3 5.44 396000 7.70 396000 100% 40% 100% 60% 5 ANBK15MAY90.00PEW3 7.40 132000 10.40 132000 100% 50% 100% 54% 6 DLFL15MAY115.00CEW3 5.50 60000 10.50 60000 100% 20% 100% 17% 7 EXID15JUN140.00CEW1 4.00 60000 7.20 60000 100% 25% 100% 37% 8 EXID15MAY150.00CEW3 6.00 88000 8.30 88000
Page 4 of 20 17 IBRL15MAY65.00PEW3 5.00 148000 7.70 148000 100% 20% 100% 27% 18 IDBI15MAY65.00CEW3 3.00 100000 5.00 100000 100% 50% 100% 50% 19 IFCI15JUN32.00PE 3.20 248000 5.20 248000 100% 100% 100% 100% 20 INCM15MAY100.00PEW3 5.60 88000 8.40 88000 100% 20% 100% 33% 21 IOBL15MAY50.00PEW3 4.60 100000 7.60 100000 100% 25% 100% 30% 22 JAIA15JUN16.00PEW1 1.80 232000 3.10 232000 100% 100% 100% 100% 23 JPPW15JUN10.00PEW1 2.10 255000 3.30 255000 100% 8% 100% 12% 24 JPPW15JUN2.00CE 3.20 255000 5.20 255000 100% 8% 100% 17% 25 NHPC15JUL14.00CEW3 3.60 495000 5.60 495000 100% 25% 100% 66% 26 NHPC15JUN16.00CEW1 1.85 290000 2.90 290000 100% 13% 100% 24% 27 UNIT15JUN14.00PE 3.60 225000 5.80 225000 100% 100% 100% 100%
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Source: SecMarx — sebi:Order/KS/AA/2019-20/3802. 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.