sebi:Order/PM/SM/2021-22/12217

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

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Violation found; monetary penalty imposed

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

• Motisons Commodities Pvt. Ltd.

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, and a monetary penalty of Rs. 23,00,000 under section 15HA of the SEBI Act, 1992 was imposed.

Full text

Adjudication Order in respect of Motisons Commodities Pvt. Ltd. in the matter of dealings in Illiquid Stock Options at BSE Page 2 of 20 APPOINTMENT OF ADJUDICATING OFFICER

Adjudication Order in respect of Motisons Commodities Pvt. Ltd. in the matter of dealings in Illiquid Stock Options at BSE Page 3 of 20 d) A summary of dealings of the Noticee in the 119 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 S. No. Contract Name Avg. Buy Rate (Rs.) Total Buy Volume (no. of units) Avg. Sell Rate (Rs.) Total Sell Volume (no. of units) % of Artificial trades of the Noticee in the contract to Total trades in the contract % of Artificial Volume generated by Noticee in the contract to Total Volume in the Contract 1 ADEL15APR620.00CE 1.00 200000 21.00 200000 100% 100% 2 ADPW14AUG45.00PEW2 0.05 544000 2.12 544000 67% 84% 3 ADPW14SEP55.00CE 0.05 1008000 1.05 1008000 100% 100% 4 ADPW15JUL28.00PEW2 1.60 532000 0.10 532000 50% 84% 5 ALBK15AUG100.00CEW3 0.05 290000 1.15 290000 28% 41% 6 ALBK15JUL90.00CE 0.05 450000 1.05 450000 50% 77% 7 ALBK15JUL95.00CE 0.05 282000 0.80 282000 25% 54% 8 ALBK15JUL95.00CEW4 2.05 212000 0.85 212000 14% 29% 9 ALLD14AUG38.00CEW1 0.05 440000 1.69 902000 33% 53% 10 ALLD14JUL28.00PE 0.05 528000 1.61 1067000 25% 48% 11 ANBK14AUG85.00CEW2 0.05 460000 2.93 532000 50% 86% 12 ANBK15APR75.00PEW1 0.15 620000 1.90 620000 13% 1% 13 ANBK15AUG70.00PEW2 0.05 1200000 0.60 1200000 18% 66% 14 ANBK15AUG80.00CEW2 0.05 268000 0.90 268000 33% 52% 15 ANBK15AUG80.00CEW3 0.05 200000 0.50 200000 17% 36% 16

Adjudication Order in respect of Motisons Commodities Pvt. Ltd. in the matter of dealings in Illiquid Stock Options at BSE Page 4 of 20 S. No. Contract Name Avg. Buy Rate (Rs.) Total Buy Volume (no. of units) Avg. Sell Rate (Rs.) Total Sell Volume (no. of units) % of Artificial trades of the Noticee in the contract to Total trades in the contract % of Artificial Volume generated by Noticee in the contract to Total Volume in the Contract 31 GMRI14NOV24.00CEW2 0.05 6670000 0.80 6670000 100% 100% 32 GMRI14OCT24.00CEW4 0.05 2040000 0.55 2040000 100% 100% 33 GMRI14OCT26.00CEW3 0.05 1730000 1.49 1730000 60% 99% 34 GMRI14OCT28.00CEW3 0.05 6240000 0.45 6240000 100% 100% 35 GMRI14SEP20.00PE 0.05 2630000 1.00 2630000 100% 100% 36 GMRI14SEP20.00PEW1 0.05 590000 1.74 590000 33% 52% 37 GMRI15AUG12.00PEW1 0.05 1859000 0.80 1859000 13% 52% 38 HDIL14AUG100.00CEW2 0.05 1120000 2.09 1264000 27% 83% 39 HDIL14JUL75.00PE 0.06 688000 1.94 688000 60% 87% 40 HDIL14SEP105.00CE 0.05 1080000 2.35 1080000 43% 96% 41 HDIL14SEP85.00PEW1 0.05 240000 2.55 240000 100% 100% 42 HDIL15JUN110.00CE 0.05 688000 1.50 688000 100% 100% 43 HDIL15JUN80.00PEW3 0.05 332000 1.55 332000 100% 100% 44 HNDL15JUL110.00CEW2 3.05 266000 0.05 266000 50% 93% 45 HNDL15JUL95.00PEW2 0.05 498000 3.05 498000 50% 96% 46 IDBI14OCT70.00CEW4 0.05 1112000 2.30 1112000 33% 87% 47 IDBI14OCT75.00CEW4 2.26 116000 0.05 116000 80% 50% 48 IDBI15AUG70.00CEW3 0.05 160000 1.00 160000 14% 22% 49 IDBI15AUG75.00CEW1 0.05 520000 1.30 520000 7% 32% 50 IDF

Source: SecMarx — sebi:Order/PM/SM/2021-22/12217. 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.