sebi:Order/RJ/PG/2021-22/15296

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

Noticee found in violation of PFUTP Regulations, 2003; penalty imposed under Section 15HA of the SEBI Act, 1992

Provisions invoked

• s. 15
• s. 19
• s. 15H
• s. 15I
• s. 15J
• s. 11C
• s. 28A
• s. 24
• s. 15I(1)

Regulations

• Reg. 4
• Reg. 3
• Reg. 2(1)(c)
• Reg. 200
• Reg. 3(a)

Parties

• Surbhi Bagaria

Holding

The Noticee, Surbhi Bagaria, was held to have violated Regulations 3(a), 3(b), 3(c), 3(d), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003 by executing 2 non-genuine reversal trades in stock options contract INCM15MAR80.00CEW2 on March 11, 2015, generating 72,000 units of artificial volume (10.06% of total contract volume).

Full text

Adjudication Order in respect of Surbhi Bagaria Page 2 of 28 (hereinafter referred to as ‘Noticee’) was one of the various entities who indulged in execution of non-genuine trades in Stock Options segment of BSE during the Investigation Period. The dealings of the Noticee during the Investigation Period and the allegations against the Noticee with respect to execution of non-genuine trades are narrated in the following paragraphs.

Adjudication Order in respect of Surbhi Bagaria Page 3 of 28 c) Thus, Noticee, through her dealing in the contract viz, “INCM15MAR80.00CEW2” during the Investigation Period, executed 2 non genuine trades and thereby allegedly generated artificial volume of 72,000 units which is 10.06% of the total volume traded in the said contract in the market during the Investigation Period.

Adjudication Order in respect of Surbhi Bagaria Page 4 of 28 SHOW CAUSE NOTICE, REPLY AND HEARING 9. A Show Cause Notice (hereinafter referred to as ‘SCN’) bearing ref. no. SEBI/HO/EFD2/PROS/P/OW/2021/22649/1 dated September 06, 2021 was issued to the Noticee under Rule 4 of the Adjudication Rules, 1995 to show cause as to why an inquiry be not held against her in terms of Rule 4 of the Adjudication Rules, 1995 and penalty be not imposed under Section 15HA of the SEBI Act, 1992 for the violations alleged to have been committed by her. The SCN was sent to the Noticee vide Speed Post AD and was duly served on the Noticee.

Source: SecMarx — sebi:Order/RJ/PG/2021-22/15296. 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.