sebi:Order/SBM/AK/2021-22/14677

SEBI · SEBI · 2021-04-26 · Suresh B Menon, Adjudicating Officer

Reviewed by Varun Matlani, Advocate — Securities Lawyer practicing in SAT and SEBI

Facts / Headnote

Penalty imposed on the Noticee for violation of PFUTP Regulations

Provisions invoked

• s. 15
• s. 19
• s. 15H
• s. 15J
• s. 28A

Regulations relied on

• SEBI (PFUTP) Regulations, 2003 — 3(a)
• SEBI (PFUTP) Regulations, 2003 — 4(1)
• SEBI (PFUTP) Regulations, 2003 — 4(2)(a)

Parties

• Abhijeet Suresh Bora HUF

Holding

The Adjudicating Officer held that the Noticee violated regulations 3(a), 4(1) and 4(2)(a) of the PFUTP Regulations by executing reversal/non-genuine trades in illiquid stock option contracts at BSE, and imposed a penalty of Rs.5,00,000 under section 15HA of the SEBI Act.

Full text

___________________________________________________________________________ Adjudication order in respect of Abhijeet Suresh Bora HUF in the matter of dealing in Illiquid Stock Options at BSE Page 2 of 13 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 Trade Practices relating to Securities Markets) Regulations, 2003 (hereinafter referred to as ‘PFUTP Regulations’). In view of the above reasons, adjudication proceedings have been 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’). APPOINTMENT OF ADJUDICATING OFFICER

___________________________________________________________________________ Adjudication order in respect of Abhijeet Suresh Bora HUF in the matter of dealing in Illiquid Stock Options at BSE Page 3 of 13 Date Buyer Seller Buy

___________________________________________________________________________ Adjudication order in respect of Abhijeet Suresh Bora HUF in the matter of dealing in Illiquid Stock Options at BSE Page 4 of 13

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