sebi:Order/KS/AA/2020-21/8270
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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
- Salasaar Iron and Steels Private Limited
Holding
On the excerpt provided, the Adjudicating Officer frames for consideration whether the Noticee's reversal trades in BSE stock options violated Regulations 3(a),(b),(c),(d), 4(1) and 4(2)(a) of the PFUTP Regulations and attract penalty under Section 15HA of the SEBI Act; the final determination and penalty are not contained in the excerpt.
Full text
Page 2 of 29 April 1, 2014 to September 30, 2015 (hereinafter referred to as "Investigation Period / IP") 2. Pursuant to investigation, it was observed that total 2,91,643 trades comprising substantial 81.38% of all the trades executed in stock options segment of BSE during the Investigation Period were non genuine trades. The aforesaid non- genuine trades resulted into creation of artificial volume to the tune of 826.21 crore units or 54.68% of the total market volume in stock options segment of BSE during the Investigation Period. It was observed that Salasaar Iron and Steels 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 29 (hereinafter referred to as “SEBI Act”) and Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as “Adjudication Rules”) to conduct adjudication proceedings in the manner specified under Rule 4 of Adjudication Rules read with section 15I (1) and (2) of SEBI Act, and if satisfied that penalty is liable, impose such penalty deemed fit in terms of Rule 5 of Adjudication Rules and Section 15HA of SEBI Act.
Page 4 of 29 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 ALBK15FEB105.00CE 1.00 240000 5.20 240000 100% 18% 100% 28% 2 ANBK15MAR85.00PEW2 0.20 348000 2.20 348000 100% 10% 100% 15% 3 DISH15FEB90.00PE 6.70 580000 11.00 580000 100% 25% 100% 60% 4 EXID15JUL135.00CEW3 10.50 134000 17.95 134000 100% 100% 100% 100% 5 EXID15MAR180.00CEW2 2.50 152000 7.75 152000 100% 33% 100% 19% 6 IDBI15FEB60.00CE 2.80 280000 6.40 280000 100% 25% 100% 36% 7 IDBI15FEB65.00CE 2.30 412000 5.20 412000 100% 50% 100% 54% 8 IDBI15OCT70.00CEW1 5.85 424000 8.20 424000 100% 100% 100% 100% 9 IDBI15OCT75.00CEW1 3.55 204000 5.60 204000 100% 100% 100% 100% 10 IDEA15FEB155.00PE 0.40 268000 3.20 268000 100% 33% 100% 54% 11 IDFC15FEB170.00CE 2.25 478000 5.35 478000 100% 100% 100% 100% 12 IDFC15MAR170.00CEW2 0.40 296000 3.75 296000 100% 13% 100% 27% 13 INCM15OCT70.00CEW1 5.95 260000 8.45 260000 100% 100% 100% 100% 14 NMDC15FEB135.00CE 6.25 284000 13.25 284000 100% 67% 100% 67% 15 UCOB15MAR70.00CEW3 1.25 536000 4.10 536000 100% 8% 100% 27% 16 YESB15FEB940.00PE 120.00 7000 190.00
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Source: SecMarx — sebi:Order/KS/AA/2020-21/8270. 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.