sebi:Order/PM/AB/2019-20/3797

SEBI · SEBI · 2018-04-03 · Prasanta Mahapatra, Adjudicating Officer

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Facts / Headnote

Penalty of Rs. 18,00,000/- imposed upon the Noticee under Section 15HA of the SEBI Act for violation of Regulation 3(a), 4(1) and 4(2)(a) of the PFUTP Regulations.

Provisions invoked

• s. 15
• s. 15H
• s. 15I
• s. 15J

Regulations

• Reg. 3
• Reg. 2(1)(c)
• Reg. 3(a)
• Reg. 4(2)(a)
• Reg. 2(1)(c)(2)
• Reg. 2(1)(c)(7)
• Reg. 2(1)(c)(8)

Holding

The Noticee violated Regulations 3(a), 4(1) and 4(2)(a) of the PFUTP Regulations by executing non-genuine reversal trades in illiquid Stock Options on the BSE, and a penalty of Rs. 18,00,000/- was imposed under Section 15HA of the SEBI Act.

Full text

Adjudication Order in the matter of dealing in Illiquid Stock Options at the BSE Page2 of 16 Trading Practices related to Securities Markets) Regulations, 2003 (hereinafter be referred to as, the “PFUTP Regulations”).

Adjudication Order in the matter of dealing in Illiquid Stock Options at the BSE Page3 of 16 for significant change in the contract price which indicates that these trades are artificial and are non-genuine in nature. d) A summary of dealings of the Noticee in the 5 Stock Options contracts in which the Noticee executed non-genuine reversal trades during the Investigation Period are as under:

Adjudication Order in the matter of dealing in Illiquid Stock Options at the BSE Page4 of 16 16 GMRI14NOV22.00CEW3 0.70 470000 0.05 470000 100% 100% 17 HDIL14DEC85.00CEW1 1.65 12000 0.40 12000 100% 100% 18 HDIL14DEC90.00CEW1 1.30 24000 0.05 24000 75% 38% 19 HDIL14NOV85.00CE 2.05 32000 0.05 8000 60% 40% 20 HDIL14NOV90.00CEW3 1.27 36000 0.05 12000 57% 50% 21 HDIL14NOV95.00CE 3.00 4000 0.05 4000 50% 20% 22 HDIL14NOV95.00CEW2 1.10 8000 0.05 8000 100% 100% 23 HDIL15JAN70.00CEW1 1.55 24000 0.05 24000 33% 7% 24 HDIL15JAN70.00CEW2 1.80 20000 0.73 16000 67% 55% 25 HDIL15MAY100.00CE 6.68 34000 5.79 34000 29% 13% 26 HDIL15MAY120.00PE 13.79 34000 10.50 34000 40% 49% 27 HDIL15MAY125.00PE 21.39 28000 17.57 28000 40% 45% 28 IFCI14NOV42.00CEW3 0.79 405000 0.05 405000 50% 46% 29 INCM14NOV115.00CEW3 2.04 176000 0.05 176000 100% 100% 30 ITCL15JAN370.00CEW2 2.10 18000 0.05 15000 78% 83% 31 JAIA14NOV36.00CEW3 0.55 808000 0.05 808000 100% 100% 32 JISL14NOV90.00CEW3 1.29 404000 0.05 404000 27% 55% 33 JSWE15MAY120.00PE 11.50 10000 7.00 10000 100% 100% 34 JSWE15MAY135.00PE 27.50 30000 22.50 30000 20% 32% 35 JSWE15MAY90.00CE 21.50 20000 16.50 20000 33% 42% 36 KARB14NOV135.00PEW3 1.99 258000 0.05 258000 100% 100% 37 KARB15MAY100.00CE 27.00 18000 20.50 18000 25% 26% 38 KARB15MAY110.00CE 17.00 20000 13.50 20000 50% 59% 39 KARB15MAY115.00CE 12.00 20000 8.50 20000 25% 29% 40 KARB15MAY145.00PE 24.50 20000 18.00 20000 33% 38% 41 LNTF14NOV80.00CEW3 2.02 140000 0.05 140000 100% 100% 42 MCRS15MAY220.00CEW2 31.4

Source: SecMarx — sebi:Order/PM/AB/2019-20/3797. 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.