sebi:Order/SD/KS/2021-22/15215
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Facts / Headnote
Allegations of violation of PFUTP Regulations sustained against the Noticee; penalty proceedings under section 15HA of the SEBI Act
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 28A
- s. 17
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
Parties
- Ms. Shubhi Khanna
Holding
The Adjudicating Officer held that the Noticee, Ms. Shubhi Khanna, executed reversal/non-genuine trades in illiquid stock option contracts at BSE with a predetermined arrangement with her counterparty, thereby generating artificial volume and violating Regulations 3(a),(b),(c),(d), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003.
Full text
Adjudication Order in the matter of Dealings in Illiquid Stock Options at BSE Page 2 of 20 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 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 26/05/2015 SHUBHI KHANNA XION GEMS & JEWELLERS PVT. LTD 11:02:36.276299 11:02:36.244613 11:02:36.446942 24 15000 26/05/2015 XION GEMS & JEWELLERS PVT. LTD SHUBHI KHANNA 11:02:32.838508 11:02:32.072966 11:02:32.838508 38 15000
Adjudication Order in the matter of Dealings in Illiquid Stock Options at BSE Page 4 of 20 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/2021-22/15215. 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.