sebi:Order/PB/AS/2021-22/14892
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Facts / Headnote
Violations of PFUTP Regulations, 2003 established; penalty of ₹5,00,000 imposed on the Noticee.
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 3
- Reg. 3(a)
Parties
- Beena Singh (PAN-DMTPS1616C)
Holding
The Adjudicating Officer held that Beena Singh violated regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003 by executing non-genuine reversal trades in stock options contracts on BSE, and imposed a penalty of ₹5,00,000 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. It was observed that Beena Singh (PAN-DMTPS1616C) (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 Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations, 2003”).
Page 3 of 21 penalty 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 21 6. From the above table, following was noted as regard to dealings of the Noticee: (a) The Noticee had executed non genuine trades in 2 contracts, wherein all trades of Noticee in the said 2 contracts were non genuine trades. (b) No. of non-genuine trades of the Noticee had significantly contributed to total no. of trades from the market in the aforesaid contracts, as 16.67% to 100% of the trades that happened in the aforesaid contracts were due to non-genuine trades executed by the Noticee. (c) The entire 100% of volume generated by Noticee in the above contracts was artificial volume, and further, the percentage of artificial volume generated by the Noticee in the above contracts to the total volume from the market in said contracts were in the range of 11.3% to 100%. Therefore, substantial volume generated by the Noticee in each of the above contracts were artificial volume. (d) 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/AS/2021-22/14892. 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.