sebi:Order/PM/SM/2021-22/12216

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

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Facts / Headnote

Penalty of Rs. 5,00,000 imposed on the Noticee for violation of PFUTP Regulations

Provisions invoked

• s. 15
• s. 15H
• 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)

Parties

• Nirmal Commodities Broker Private Limited

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 in illiquid stock options at BSE and is liable to a monetary penalty of Rs. 5,00,000 under section 15HA of the SEBI Act, 1992.

Full text

Adjudication Order in respect of Nirmal Commodities Broker Private Limited in the matter of dealings in Illiquid Stock Options at BSE Page 2 of 18 related to Securities Markets) Regulations, 2003 (hereinafter be referred to as, the PFUTP Regulations, 2003).

Adjudication Order in respect of Nirmal Commodities Broker Private Limited in the matter of dealings in Illiquid Stock Options at BSE Page 3 of 18 c) The trades entered by the Noticee were reversed on the same day with the same counterparties at a substantial price difference without any basis 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 2 Stock Options contracts in which the Noticee executed non-genuine reversal trades during the Investigation Period are as under: Table 1: Summary of trading of the Noticee in Illiquid Stock Options on BSE

Adjudication Order in respect of Nirmal Commodities Broker Private Limited in the matter of dealings in Illiquid Stock Options at BSE Page 4 of 18 (c) employ any device, scheme or artifice to defraud in connection with dealing in or issue of securities which are listed or proposed to be listed on a recognized stock exchange; (d) engage in any act, practice, course of business which operates or would operate as fraud or deceit upon any person in connection with any dealing in or issue of securities which are listed or proposed to be listed on a recognized stock exchange in contravention of the provisions of the Act or the rules and the regulations made there under.

Source: SecMarx — sebi:Order/PM/SM/2021-22/12216. 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.