sebi:Order/KS/PP/2021-22/12034
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Facts / Headnote
Penalty imposed on the Noticee for violation of PFUTP Regulations, 2003
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 3
- Reg. 4
- Reg. 4(1)
- Reg. 3(a)
Parties
- Shiva Commodities Private Ltd.
Holding
The Noticee, Shiva Commodities Private Ltd., was held liable for executing non-genuine reversal trades in the stock options segment of BSE that created artificial volume and a false or misleading appearance of trading, in violation of Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003, and penalty was imposed under Section 15HA of the SEBI Act, 1992.
Full text
Page 2 of 26 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 Shiva Commodities Private 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 26 and Section 15HA of SEBI Act, 1992. Pursuant to transfer of Ms Sangeeta Rathod, undersigned was appointed as the AO in the matter vide order dated October 21, 2020.
Page 4 of 26 Sr. No. SCRIPNAME Averag e Buy rate Buy Quantity Average Sell rate Sell Quantity % of Non Genuine trades of Entity in the contract to Entity's Total trades in the Contract % of Non Genuine trades of Entity in the contract to Total trades in the Contract % 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
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Source: SecMarx — sebi:Order/KS/PP/2021-22/12034. 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.