sebi:Order/SD/KS/2021-22/14935
Facts / Headnote
Noticee held liable and penalty of Rs.5,00,000 imposed under Section 15HA of the SEBI Act
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 28A
Regulations relied on
- SEBI (PFUTP) Regulations, 2003 — 3(a)
Parties
- Mr. Shubham Singhal
Holding
The Noticee violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003 by executing non-genuine reversal trades in illiquid stock options at BSE and is liable to a monetary 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 17 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 17 Noticee under the provisions of section 15HA of the SEBI Act. The SCN issued to the Noticee, inter alia, mentioned the following-: i. It is noted that Noticee was one of the various entities which were indulged in execution of such alleged non-genuine trades in Stock Options Segment of BSE during the Investigation period. Following points deal with the dealings of Noticee during the Investigation period and allegations against it for execution of non-genuine trades. Date Buyer Seller Buy Order Time Sell Order Time Trade Time Trade Rate (Rs.) Trade Quantity 30/03/2015 CHAPLIN SECURITIES PRIVAT E LIMITED SHUBHAM SINGHAL 11:07:00.552879 10:46:20.943810 11:07:00.552879 1.75 144000 30/03/2015 SHUBHAM SINGHAL CHAPLIN SECURITIES PRIVAT E LIMITED 11:25:32.965946 11:37:37.105756 11:37:37.105756 0.05 144000
Adjudication Order in the matter of Dealings in Illiquid Stock Options at BSE Page 4 of 17 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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