sebi:Order/SD/KS/2021-22/14938

SEBI · SEBI · 2021-06-28 · Sandeep P Deore, Adjudicating Officer

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Facts / Headnote

Penalty of Rs.5,00,000 imposed on Ms. Shruti Saraf for violation of PFUTP Regulations

Provisions invoked

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

Regulations

• Reg. 3
• Reg. 4(1)
• Reg. 3(a)

Parties

• Ms. Shruti Saraf

Holding

Ms. Shruti Saraf violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations by executing non-genuine reversal trades in illiquid stock options at BSE, and a monetary penalty of Rs.5,00,000 under Section 15HA of the SEBI Act was imposed on her.

Full text

Adjudication Order in the matter of Dealings in Illiquid Stock Options at BSE Page 2 of 19 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 19 should not be held against her and why penalty, if any, should not be imposed on the 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 27/03/2015 SHRUTI SARAF ADARSH CREDIT CO OP SOCIETY LIMITED 10:44:14.128460 10:45:54.114521 10:45:54.114521 11.3 52000 27/03/2015 ADARSH CREDIT CO OP SOCIETY LIMITED SHRUTI SARAF 11:05:50.796057 11:05:50.620577 11:05:50.796057 19.6 52000

Adjudication Order in the matter of Dealings in Illiquid Stock Options at BSE Page 4 of 19 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

Source: SecMarx — sebi:Order/SD/KS/2021-22/14938. 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.