sebi:Order/RK/DS/2021-22/15002

SEBI · SEBI · 2021-07-02 · Rajkumar Kaluri, Adjudicating Officer

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Facts / Headnote

Violation established; monetary penalty imposed

Provisions invoked

• s. 15
• s. 15H
• s. 15J
• s. 11C
• s. 28A
• s. 15I(2)

Regulations

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

Parties

• Seema Bagree

Holding

The Noticee violated regulations 3(a), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003 by executing non-genuine reversal trades in illiquid stock options, and is liable to a monetary penalty of Rs.5,00,000 under Section 15HA of the SEBI Act.

Full text

Adjudication Order in respect of Seema Bagree in the matter of dealings in Illiquid Stock Options at BSE Page 2 of 16 that the Noticee had violated the provisions of regulations 3(a),(b),(c),(d) and regulations 4(1),4(2)(a) of the SEBI (Prohibition of Fraudulent and Unfair Trading Practices related to Securities Markets) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations, 2003”). APPOINTMENT OF ADJUDICATING OFFICER

Adjudication Order in respect of Seema Bagree in the matter of dealings in Illiquid Stock Options at BSE Page 3 of 16 b) The Noticee is alleged to have engaged in 1 such reversal trades in 1 unique contract, which led to generation of alleged artificial volume of 208000 units. c) These trades of the Noticee were reversed on the same day with same counterparty 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 Noticee in 1 Stock Options contracts in which the said Noticee allegedly executed non genuine reversal trades during the Investigation Period, provided in the SCN is reproduced below- 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 Volume generated by Noticee in the contract to Noticee’s Total Volume in the Contract % of Artificial Volume generated by Noticee in the contract to Total Volume in the Contract 1 DISH15MAR75.00PEW2 1.35 104000 0.15 104000 100 1.77

Adjudication Order in respect of Seema Bagree in the matter of dealings in Illiquid Stock Options at BSE Page 4 of 16 (b) use or employ, in connection with issue, purchase or sale of any security listed or proposed to be listed in a recognized stock exchange, any manipulative or deceptive device or contrivance in contravention of the provisions of the Act or the rules or the regulations made there under; (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/RK/DS/2021-22/15002. 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.