sebi:Order/MC/VS/2021-22/15731
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Facts / Headnote
Penalty of Rs. 5,00,000 imposed on the Noticee under Section 15HA of the SEBI Act for violation of Regulation 3(a), 4(1) and 4(2)(a) of PFUTP Regulations, 2003.
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
- Reg. 4(2)(a)
Parties
- Milestone Viniyog (P) Ltd.
Holding
The Noticee was found to have violated Regulation 3(a), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003 by engaging in non-genuine reversal trades in illiquid stock options on BSE that created artificial trading volumes, and a penalty of Rs. 5,00,000 was imposed under Section 15HA of the SEBI Act.
Full text
Adjudication Order in respect of Milestone Viniyog (P) ltd. in the matter of Dealing in Illiquid Stock Options on the BSE
Adjudication Order in respect of Milestone Viniyog (P) ltd. in the matter of Dealing in Illiquid Stock Options on the BSE artificial volumes in the Stock Options Segment of BSE during the investigation period. b) The Noticee was alleged to have engaged in 8 such reversal trades in 3 unique contracts, which led to generation of artificial volume of 680000 units. These trades of the Noticee involved three counterparties, Priyanka Singhania, Neha Singhania and Manish Chirania on two different dates i.e. 07/11/2014 and 24/03/2015, at different prices. Details of all the reversal trades of the Noticee in Stock Option Segment of BSE during investigation period were given in Annexure 2 to the SCN. c) The trades entered into by the Noticee were reversed on the same day with same counterparty at a substantial price difference without any basis for significant change in the contract price which indicates that these trades were artificial and are non- genuine in nature. d) A summary of dealings of Noticee in 3 Stock Options contract in which Noticee allegedly executed reversal trades during the investigation period, provided in the SCN is reproduced below:
Adjudication Order in respect of Milestone Viniyog (P) ltd. in the matter of Dealing in Illiquid Stock Options on the BSE 3 SBIL15MAR270.00C E 7.30 120000 3.00 120000
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Source: SecMarx — sebi:Order/MC/VS/2021-22/15731. 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.