sebi:Order/PB/2021-22/14086
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Facts / Headnote
Violation established; penalty of Rs.5,00,000 imposed under Section 15HA of the SEBI Act, 1992
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 28A
Regulations
- Reg. 3
- Reg. 4
- Reg. 200
- Reg. 3(a)
Parties
- Neha Garg [PAN: AREPG0213G]
Holding
The Noticee violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003 by executing reversal trades in the stock options segment of BSE that created artificial volume and false or misleading appearance of trading, and is liable to a minimum penalty of Rs.5,00,000 under Section 15HA of the SEBI Act, 1992.
Full text
Page 2 of 24 buy value of the transactions. The aforesaid reversal trades allegedly resulted into generation of artificial volumes in otherwise illiquid option contracts.
Page 3 of 24 under Section 15HA of the SEBI Act, 1992 for the violations alleged to have been committed by Noticee. 6. It was inter alia alleged in the SCN that Noticee was one of the entities which indulged in reversal trades which allegedly created false and misleading appearance of trading, generating artificial volumes in the Stock Options Segment of BSE during the investigation period. The Noticee is alleged to have engaged in reversal trades (altogether two trades, one on the buy side and one on the sell side) in the contract ‘LUPL15MAR1860.00CE’, which led to generation of alleged artificial volume of 29,500 units (buy side + sell side). These trades of the Noticee involved reversal with the same counterparty on the same day, but at significantly different price.
Page 4 of 24 (b) Non-genuine trades executed by the Noticee in above contracts had significant difference in buy rates and sell rates considering that the trades were reversed on same day.
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Source: SecMarx — sebi:Order/PB/2021-22/14086. 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.