sebi:Order/SD/KS/2021-22/14089
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Facts / Headnote
Violation found; penalty of Rs.5,00,000 imposed under Section 15HA of SEBI Act
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 28A
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 2
- Reg. 3(a)
- Reg. 3(d)
- Reg. 3(b)
- Reg. 3(c)
Parties
- Shruti K Shah
Holding
The Noticee Ms. Shruti K Shah violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations, 2003 by executing non-genuine reversal trades in illiquid stock options at BSE and is liable to a penalty of Rs.5,00,000 under Section 15HA of the SEBI Act.
Full text
Adjudication Order in the matter of Dealings in Illiquid Stock Options at BSE Page 2 of 20 It was also observed that the aforesaid trades resulted into alleged creation of artificial volume to the tune of 826.21 crore units in the Stock Options segment of BSE during the investigation period. In view of the large scale reversal of trades that were observed in the illiquid Stock Options segment at BSE, it is alleged that these trades were non-genuine in nature.
Adjudication Order in the matter of Dealings in Illiquid Stock Options at BSE Page 3 of 20 SHOW CAUSE NOTICE, HEARING AND REPLY
Adjudication Order in the matter of Dealings in Illiquid Stock Options at BSE Page 4 of 20 iv. From the perusal of the trade data of the alleged non-genuine trades of the Noticee, it is observed that Noticee has allegedly executed non-genuine trades in 1 contract. The total volume of 124000 units generated by the Noticee in this 1 contract. Due to its alleged non-genuine trades, an Artificial Volume was generated by the Noticee in the Stock Option Segment of BSE. These alleged non-genuine trades, executed by Noticee in above contract, had significant differential in buy rates and sell rates considering that the trades were reversed on same day v. In view of the foregoing, it is alleged that the Noticee, by indulging in execution of reversal trades in Stock Options with same entities on the same day, which were non-genuine in nature, has created false or misleading appearance of trading in the aforementioned contracts traded in the option segment of BSE. In view of the fact that these options contracts were illiquid in nature, having very small volume in trading, the Noticee allegedly created artificial volumes in stock options which was manipulative and deceptive in nature. Therefore, in view of above, it is alleged that the Noticee has violated Regulation 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations, 2003
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Source: SecMarx — sebi:Order/SD/KS/2021-22/14089. 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.