sebi:Order/PB/S./2021-22/13637
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Facts / Headnote
Penalty imposed on Noticee for violation 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
- Nidhi Agrawal (PAN: AFZPA2159J)
Holding
The Noticee was found to have violated regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations, 2003 by executing non-genuine reversal trades in stock options that created artificial volume, 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 Nidhi Agrawal (PAN: AFZPA2159J) (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 ASPL15JUL820.00CEW4 1.25 40000 4 40000 100 100 100 100 5 AUPL15JUN1260.00PE 58.09 11000 22.91 11000 100 100 100 100 6 AUPL15JUN1440.00CE 80.27 22000 35.32 22000 100 75 100 81.48 7 AUPL15MAY1470.00CE 47 12000 19 12000 100 100 100 100 8 HULL15AUG800.00PE 2.25 27000 7.7 27000 100 100 100 100 9 HULL15JUL840.00PE 1.35 32000 6.75 32000 100 50 100 56.14 10 HULL15JUL980.00CEW4 2.05 31500 7 31500 100 100 100 100 11 SIEM15JUN1530.00CE 51.5 12000 16 12000 100 100 100 100 12 SIEM15MAY1530.00CE 34.15 13000 10.92 13000 100 66.67 100 39.39 13 STAC15JUN1140.00PE 67.2 15000 19.6 15000 100 50 100 50 14 STAC15JUN1290.00CE 80 15000 26 15000 100 30 100 10.27 15 STAC15JUN1410.00CE 44.33 15000 10 15000 100 50 100 29.7
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Source: SecMarx — sebi:Order/PB/S./2021-22/13637. 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.