sebi:Order/SM/AR/2021-22/15360
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Facts / Headnote
Violation established; penalty of Rs. 5,00,000 imposed under Section 15HA
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 11C
- s. 15F
- s. 28A
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
Parties
- Abhishek Chakraborty HUF
Holding
The Noticee executed non-genuine reversal trades creating artificial volume in BSE stock options in violation of Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations, 2003 and is liable to monetary penalty of Rs. 5,00,000 under Section 15HA of the SEBI Act.
Full text
Page 2 of 23 observed that Abhishek Chakraborty HUF (PAN: AAOHA5497B) (hereinafter referred to as “Noticee”) was one such client whose reversal trades involved squaring off open positions with a significant difference without any basis for such change in the contract price. The aforesaid reversal trades allegedly resulted into generation of artificial volumes, leading to allegations that the Noticee had violated the provisions of regulations 3(a), (b), (c), (d) and regulations 4(1), 4(2)(a) of the SEBI (Prohibition of Fraudulent and Unfair Trading Practices related to Securities Markets) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations, 2003”).
Page 3 of 23 Section 15HA of the SEBI Act for the violations alleged to have been committed by the Noticee. 5.The SCN issued to the Noticee, inter alia, mentioned/ alleged the following: “….
Page 4 of 23 8. The abovementioned reversal trades and volumes are illustrated through the dealings of Noticee in one contract, viz., “LNTF15FEB80.00CE” during the investigation period, as follows:
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