sebi:Order/MR/VV/2021-22/14937
Facts / Headnote
Penalty imposed on Noticee for violation of PFUTP Regulations
Provisions invoked
- s. 15H
- s. 15I
- s. 15J
- s. 15
- s. 15F
- s. 28A
Regulations relied on
- SEBI (PFUTP) Regulations, 2003 — 3(a)
Parties
- Sudhir Kumar Gupta
Holding
The Noticee, Sudhir Kumar Gupta, 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 in a stock options contract on BSE, and a penalty of INR 5,00,000 was imposed under section 15HA of the SEBI Act.
Full text
Page 2 of 16 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 July 2, 2021 to inquire into and adjudge under section 15HA of the SEBI Act, against the Noticee for the alleged violation of the provisions of regulations 3(a), (b), (c), (d), 4(1) and 4(2) (a) of the PFUTP Regulations. The said appointment was communicated vide communiqué dated July 6, 2021.
Page 3 of 16 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; and
Page 4 of 16 e) That neither SEBI nor BSE had issued any warnings to the investors against execution of trades on BSE’s F&O Segment.
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Source: SecMarx — sebi:Order/MR/VV/2021-22/14937. 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.