sebi:Order/MR/VB/2021-22/14990
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Penalty imposed on the Noticee for violation of PFUTP Regulations
Provisions invoked
- s. 15H
- s. 15I
- s. 15J
- s. 15
- s. 15F
- s. 28A
Regulations
- Reg. 3
- Reg. 3(a)
- Reg. 26
Parties
- Sudhir Agarwal HUF (PAN: AATHS4550C)
Holding
The Noticee, Sudhir Agarwal HUF, was held to have violated regulations 3(a),(b),(c),(d), 4(1) and 4(2)(a) of the PFUTP Regulations by executing non-genuine reversal trades generating artificial volume in a stock option contract at BSE, and a penalty of INR 5,00,000 was imposed under section 15HA of the SEBI Act.
Full text
Page 2 of 18 B. APPOINTMENT OF ADJUDICATING OFFICER 3. SEBI initiated adjudication proceedings and appointed the undersigned as the adjudicating officer under section 15I of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as the “SEBI Act”) read with rule 3 of the Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 (hereinafter referred to as the “Adjudication Rules”) vide order dated April 30, 2021 to inquire into and adjudge under section 15HA of the SEBI Act, against the Noticee for the alleged violation of the aforesaid provisions of the PFUTP Regulations. The said appointment was communicated vide communiqué dated June 28, 2021.
Page 3 of 18 c) In the said contract, the trades entered by the Noticee were reversed with the same counterparty at a substantial price difference without any basis, which indicates that these trades were artificial and non-genuine in nature;
Page 4 of 18 e) That the trades executed by the Noticee cannot be labelled as non-genuine only because there was a huge price variation.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:Order/MR/VB/2021-22/14990. 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.