sebi:Order/PB/AS/2021-22/13174
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Facts / Headnote
Penalty of Rs 5,00,000 imposed on the Noticee for violation of regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations, 2003
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 3
- Reg. 3(a)
Parties
- Nikita Deora (PAN: ASKPD6662K)
Holding
The Noticee was found to have violated regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003 by executing 12 non-genuine reversal trades in 6 stock option contracts on BSE, and a penalty of Rs 5,00,000 was imposed under section 15HA of the SEBI Act, 1992.
Full text
Page 2 of 21 2. Pursuant to investigation, it was observed that total 2,91,643 trades comprising substantial 81.38% of all the trades executed in stock options segment of BSE during the IP were non genuine trades. The aforesaid non- genuine trades resulted into creation of artificial volume to the tune of 826.21 crore units or 54.68% of the total market volume in stock options segment of BSE during the IP. It was observed that Nikita Deora (PAN- ASKPD6662K) (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, 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 Trade Practices) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations, 2003”).
Page 3 of 21 if satisfied that penalty is liable, impose such penalty deemed fit in terms of rule 5 of Adjudication Rules and section 15HA of SEBI Act, 1992. Pursuant to transfer of Shri K Saravanan, the undersigned was appointed as Adjudicating Officer in the matter, conveyed vide communique dated July 14, 2021.
Page 4 of 21 4 ITCL15JUL370.00CE 1 30000 3 30000 100 100 100 100 5 LNTL15JUL1470.00PEW4 2 25000 7.5 25000 100 100 100 100 6 STAC15MAY990.00PE 14 10000 29 10000 100 33.33 100 33.33
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Source: SecMarx — sebi:Order/PB/AS/2021-22/13174. 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.