sebi:Order/RJ/PG/2021-22/13549

SEBI · SEBI · 2021-07-02 · Ratan Lal Jat, Adjudicating Officer

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Facts / Headnote

Adjudication proceedings disposed of without penalty

Provisions invoked

• s. 15
• s. 19
• s. 15H
• s. 15I
• s. 248
• s. 248(5)

Regulations

• Reg. 4(1)
• Reg. 3(a)

Parties

• Surajgarh Commercial Private Limited

Holding

The adjudication proceedings initiated against Surajgarh Commercial Private Limited cannot be proceeded with because the Noticee's name was struck off from the Register of Companies and the company was dissolved as on August 14, 2021, prior to the issuance of the Show Cause Notice on August 17, 2021.

Full text

Adjudication Order in respect of Surajgarh Commercial Private Limited Page 2 of 5 3. It was observed that Surajgarh Commercial Private Limited (hereinafter referred to as “Noticee”) was one of the various entities which had indulged in the execution of the non-genuine trades in the Stock Options Segment at BSE during the above referred investigation period. It was observed that Noticee had entered into reversal trades with its counterparty which involved squaring off transactions with significant difference in sell value and buy value of the transactions. It was therefore alleged that Noticee had executed the reversal trades, which were non-genuine in nature and have created false or misleading appearance of trading in terms of creation of artificial volume in the Stock Options segment at BSE and therefore, it is alleged that the Noticee has violated the provisions of regulations 3(a), (b), (c), (d) and regulation 4(1), 4(2) (a) of the SEBI (Prohibition of Fraudulent and Unfair Trading Practices relating to Securities Markets) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”). In view of the above, adjudication proceedings was initiated against the Noticee under the provisions of section 15 HA of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”).

Adjudication Order in respect of Surajgarh Commercial Private Limited Page 3 of 5 6. The SCN was issued to the Noticee, inter alia, alleging the following- “ ……….

Adjudication Order in respect of Surajgarh Commercial Private Limited Page 4 of 5 CONSIDERATION OF ISSUES AND FINDINGS 10. I have taken into consideration the facts and circumstances of the case and the material available on record. I have also taken into consideration the reply dated September 04, 2021 received from the Director of Surajgarh commercial Private Limited on behalf of the Noticee. The Notification from Ministry of corporate Affairs(MCA), Government of India, submitted by Noticee as mentioned at paragraph 9 mentioned the following:

Source: SecMarx — sebi:Order/RJ/PG/2021-22/13549. 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.