sebi:Order/SM/S./2023-24/25970
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Facts / Headnote
Violation established; penalty of Rs.5,00,000 imposed on Noticee
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
- s. 28A
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
- Reg. 26
Parties
- Swati Gupta
Holding
The Noticee violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations, 2003 by executing non-genuine reversal trades in illiquid stock options at BSE and is liable to a monetary penalty of Rs.5,00,000 under Section 15HA of the SEBI Act.
Full text
Adjudication Order in respect of Swati Gupta in the matter of Illiquid Stock Options at BSE. Page 2 of 18 3. Swati Gupta (“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”).
Adjudication Order in respect of Swati Gupta in the matter of Illiquid Stock Options at BSE. Page 3 of 18 the alleged violations of Regulations 3(a), (b), (c), (d), 4(1), and 4(2)(a) of the PFUTP Regulations, 2003 by Noticee.
Adjudication Order in respect of Swati Gupta in the matter of Illiquid Stock Options at BSE. Page 4 of 18 7. The SCN with reference no. SEBI/HO/EAD/EAD10/SM/AE/37974/1/2022 dated August 08, 2022 was served on the Noticee via digitally signed email dated August 08, 2022. The proof of service is on record.
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Source: SecMarx — sebi:Order/SM/S./2023-24/25970. 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.