sebi:Order/KS/AS/2020-21/12081
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Facts / Headnote
Penalty imposed on Noticee for engaging in non-genuine reversal trades in stock options segment of BSE
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
Parties
- Swaran Financial Pvt Ltd
Holding
The Noticee was found to have executed non-genuine reversal trades in stock options segment of BSE, creating artificial volume, in violation of Regulations 3(a),(b),(c),(d), 4(1) and 4(2)(a) of PFUTP Regulations, 2003, and was held liable to penalty under Section 15HA of the SEBI Act.
Full text
Page 2 of 29 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 IP 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 IP. It was observed that Swaran Financial 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 IP. 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, 2003”).
Page 3 of 29 1992, 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. SCRIPNAME Average Buy rate Buy Quantity Averag e Sell rate Sell Quanti ty % of Non Genuine trades of Entity in the contract to Entity's Total trades in the Contrac t % of Non Genuine trades of Entity in the contract to Total trades in the Contrac t % of Artificial Volume generate d by Entity in the contract to Entity's Total Volume in the Contract % of Artificial Volume generate d by Entity in the contract to Total Volume in the Contract 1 ADPW14NOV45.00PE 1.19 472000 0.20 472000
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Source: SecMarx — sebi:Order/KS/AS/2020-21/12081. 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.