sebi:Order/PB/AE/2021-22/14897
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Facts / Headnote
Violation established; penalty of Rs. 5,00,000 imposed under section 15HA of SEBI Act, 1992
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 9
- Reg. 3
- Reg. 3(a)
- Reg. 2(1)
- Reg. 10
Parties
- Nirikshan Consultancy Pvt Ltd
Holding
The Noticee executed 4 non-genuine reversal trades in 1 illiquid BSE stock option contract generating artificial volume of 1,10,000 units, violating regulations 3(a),(b),(c),(d), 4(1) and 4(2)(a) of PFUTP Regulations, 2003, and is liable to monetary penalty of Rs. 5,00,000 under section 15HA of SEBI Act, 1992.
Full text
Page 2 of 30 2. Pursuant to investigation, it was observed that total 2,91,744 trades comprising substantial 81.40% of all the trades executed in stock options segment of BSE during the IP were non genuine trades. It was observed that Nirikshan Consultancy Pvt Ltd (PAN: AAACN8465H) (hereinafter referred to as the “Noticee”) was one of the various entities who 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 were alleged to be manipulative and 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 Trading Practices related to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations, 2003”).
Page 3 of 30 is liable, impose such penalty deemed fit in terms of rule 5 of Adjudication Rules and section 15HA of SEBI Act, 1992.
Page 4 of 30 6. From the above table, following was noted as regard to dealings of the Noticee: (a) The Noticee has executed non genuine trades in 1 contract, wherein 4 trades of the Noticee in the said contract were non genuine trades.
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Source: SecMarx — sebi:Order/PB/AE/2021-22/14897. 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.