sebi:Order/SM/AD/2023-24/26087
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Facts / Headnote
Penalty imposed on Noticee for violations of PFUTP Regulations, 2003
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
- s. 28A
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
- Reg. 26
Parties
- V S Shah
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 contracts at BSE that created artificial trading volumes, and a penalty of Rs. 5,00,000 was imposed under Section 15HA of the SEBI Act.
Full text
Adjudication Order in respect of V S Shah in the matter of Illiquid Stock Options at BSE. Page 2 of 18 3. V S Shah (“the Noticee”) was one such client whose reversal trades involved squaring off transactions with significant difference in the sell value and buy value of the transactions. The aforesaid reversal trades allegedly resulted into generation of artificial volumes, leading to allegations that the Noticee had violated Regulation 3(a),(b),(c),(d) and Regulation 4(1), 4(2)(a) SEBI (Prohibition of Fraudulent and Unfair Trading Practices related to Securities Markets) Regulations, 2003 (hereinafter, referred to as “PFUTP Regulations, 2003/PFUTP Regulations”).
Adjudication Order in respect of V S Shah in the matter of Illiquid Stock Options at BSE. Page 3 of 18 Regulations 3(a), (b), (c), (d), 4(1), and 4(2)(a) of the PFUTP Regulations, 2003 by Noticee.
Adjudication Order in respect of V S Shah in the matter of Illiquid Stock Options at BSE. Page 4 of 18 8. The aforesaid SCN served to the Noticee indicated not only the nature and details of the violation alleged to have been committed by the Noticee but also intimated the Noticee regarding the SEBI Settlement Scheme, 2022 (hereinafter referred to as “SEBI Settlement Scheme”) framed by SEBI in the matter of Illiquid Stock Options. The intimation regarding settlement scheme given to the Noticee in the SCN is reproduced herein below:
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Source: SecMarx — sebi:Order/SM/AD/2023-24/26087. 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.