sebi:Order/KS/AA/2019-20/4582
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Facts / Headnote
Violation established; penalty of Rs. 5,00,000 imposed under Section 15HA
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15I
- s. 15J
- s. 15F
- s. 28A
- s. 15I(1)
Regulations
- Reg. 2(c)
- Reg. 3
- Reg. 2(1)(c)
- Reg. 2
- Reg. 3(a)
Parties
- Ranmak Works Pvt. Ltd.
Holding
The Noticee executed 40 non-genuine reversal trades in 20 BSE stock option contracts creating artificial volume, violating Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations. A monetary penalty of Rs. 5,00,000 under Section 15HA of the SEBI Act was imposed on Ranmak Works Pvt. Ltd.
Full text
Page 2 of 36 crore units or 54.68% of the total market volume in stock options segment of BSE during the Investigation Period. It was observed that Ranmak Works Pvt. Ltd. (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 36 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 40 non genuine trades in 20 Stock Options contracts which resulted in artificial volume of total 60,19,250 units. The Noticee made a profit of approx. Rs. 3,11,24,813 by executing non genuine trades during the I.P. Summary of dealings of the Noticee in 20 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 ACCL15APR1530.00CE 44.00 62500 84.00 62500 100% 20% 100% 25% 2 BOBL15MAR210.00PE 17.00 86250 28.50 86250 100% 50% 100% 50% 3 BPCL15APR740.00CEW4 2.00 174500 19.20 174500 100% 100% 100% 100% 4 BPCL15APR780.00PEW3 28.00 119000 53.20 119000 100% 100% 100% 100% 5 BPCL15APR800.00CEW4 2.00 70000 12.00 70000 100% 50% 100% 50% 6 CARN15APR240.00PE 11.00 294000 19.50 294000 100% 100% 100% 100% 7 DIVI15MAR1740.00CE 55.00 20000 80.00 20000 100% 33% 100% 11% 8 DRRL15APR3400.00PE
Page 4 of 36 18 RLNF15MAR460.00CE 1.20 182000 12.20 182000 100% 5% 100% 18% 19 RLNF15MAR460.00PE 2.00 193000 12.35 193000 100% 17% 100% 26% 20 YESB15MAR820.00CE 18.00 166500 27.00 166500 100% 13% 100% 17%
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Source: SecMarx — sebi:Order/KS/AA/2019-20/4582. 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.