sebi:Order/PR/PC/2021-22/13651
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Facts / Headnote
Penalty imposed on the 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
- Bindu Sharma (PAN: AIEPS3372B)
Holding
The Adjudicating Officer held that 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 stock options that created artificial volume, and imposed a penalty of Rs. 5,00,000 under section 15HA of the SEBI Act, 1992.
Full text
Page 2 of 16 2. Pursuant to investigation, it was observed that total of 2,91,744 trades comprising substantial 81.40% 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 Bindu Sharma (PAN- AIEPS3372B) (hereinafter referred to as the “Noticee”) was one among 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 16 that penalty is liable, impose such penalty deemed fit in terms of rule 5 of Adjudication Rules and section 15HA of SEBI Act, 1992.
Page 4 of 16 b. The non-genuine trades of the Noticee had significantly contributed to the total number of trades from the market in the above contract, i.e. 30.14% of the trades that happened in the contract was due to non-genuine trades executed by the Noticee. c. The entire volume generated by the Noticee in the above contract was artificial volume, and further, the artificial volume generated by the Noticee also contributed to 30.14% of the total volume in the market in said contracts. d. The non-genuine trades executed by the Noticee in the above contract had significant difference in the buy and sell rates considering that the trades were reversed on same day.
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Source: SecMarx — sebi:Order/PR/PC/2021-22/13651. 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.