sebi:Order/PB/AS/2021-22/15083
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Facts / Headnote
Violation established; penalty of Rs 5,00,000 imposed under section 15HA
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 3
- Reg. 3(a)
Parties
- Beena Devi Sadani
Holding
The Noticee violated regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003 by executing non-genuine reversal trades, and a monetary penalty of Rs 5,00,000 under section 15HA of the SEBI Act, 1992 was imposed.
Full text
Page 2 of 23 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 23 S. No. Contract Name Avg. Buy Rate (₹) Total Buy Volume (No. of units) Avg. Sell Rate (₹) Total Sell Volume (No. of units) % of Non Genuine trades of Noticee in the contract to Noticee's Total trades in the Contract % of Non Genuine trades of Noticee in the contract to Total trades in the Contract % of Artificial Volume generated by Noticee in the contract to Noticee's Total Volume in the Contract % of Artificial Volume generated by Noticee in the contract to Total Volume in the Contract 1 AXIS15MAR560.00PEW2 4 10000 14 10000 100 50 100 50 2 RLNF15MAR460.00PE 0.8 28500 7.8 28500 100 16.67 100 3.9
Page 4 of 23 Vide email dated December 15, 2021, Noticee requested for web address for availing the opportunity of personal hearing. Vide email dated December 15, 2021, Noticee was provided the said web address for hearing. Vide emails dated December 15 and December 16, 2021, Authorized Representative (AR) of the Noticee viz. Shri Manas Shankar Ray (Advocate) requested for adjournment of the personal hearing. Vide email dated December 16, 2021, Noticee’s request was acceded to and final opportunity of personal hearing was granted on December 28, 2021. Vide email dated December 17, 2021, AR submitted copy of vakalatnama, copy of PAN card of Noticee and Photo ID card of the AR. Vide email dated December 27, 2021, web address for the personal hearing as scheduled was provided. Vide email dated December 28, 2021, AR submitted reply on merits which is summarized below: Allegations in the SCN are based on surmises, presumptions and incorrect appreciation of facts of the case. Trades were conducted on screen-based anonymous trading platform of BSE, without any knowledge of the counterparty. Also, SCN does not mention any connection/collusion with the counterparty. The prices for buy and sell were within the price range permitted by BSE/ SEBI, and the settlement took place through recognized Clearing Corporation. Therefore, the trades were genuine. The SCN has been issued after more than 6 years, therefore, SCN must be set aside on the ground of delay and laches. The basis
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Source: SecMarx — sebi:Order/PB/AS/2021-22/15083. 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.