sebi:Order/SM/AR/2021-22/15461
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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. 15F
- s. 28A
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
Parties
- Abhishek Mall
Holding
The Noticee executed non-genuine reversal trades creating artificial volume in illiquid stock options in violation of Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003 and is liable to a monetary penalty of Rs. 5,00,000 under Section 15HA of the SEBI Act.
Full text
Page 2 of 17 positions by the clients and counterparties in a contract on the same day. It was observed that Abhishek Mall (PAN: AOTPM0772Q) (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 17 not be initiated against the Noticee and penalty not be imposed on the Noticee under Section 15HA of the SEBI Act for the violations alleged to have been committed by the Noticee.
Page 4 of 17 8. The abovementioned reversal trades and volumes are illustrated through the dealings of Noticee in one contract, viz., “TMCL15MAR200.00CE” during the investigation period, as follows: (a) During the investigation period, 2 trades for 40,000 units were executed by the Noticee in the said contract on 26/03/2015.
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Source: SecMarx — sebi:Order/SM/AR/2021-22/15461. 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.