sebi:Order/SM/S./2023-24/27833
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Facts / Headnote
Ex parte penalty of Rs. 5,00,000 imposed on Noticee for violation of PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
- s. 28A
Regulations
- Reg. 3
- Reg. 2(1)(c)
- Reg. 4(1)
- Reg. 2(1)
- Reg. 4(2)
- Reg. 3(a)
- Reg. 26
- Reg. 2(1)(c)(8)
Parties
- Sunil Kumar Lodha HUF
Holding
The Noticee violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations by executing non-genuine reversal trades in illiquid BSE stock options and was held liable to a monetary penalty of Rs. 5,00,000 under Section 15HA of the SEBI Act.
Full text
Adjudication Order in respect of Sunil Kumar Lodha HUF in the matter of Illiquid Stock Options at BSE. Page 2 of 15 3. Sunil Kumar Lodha HUF (“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) of SEBI (Prohibition of Fraudulent and Unfair Trading Practices relating to Securities Market) Regulations, 2003 (hereinafter, referred to as “PFUTP Regulations, 2003/ PFUTP Regulations”).
Adjudication Order in respect of Sunil Kumar Lodha HUF in the matter of Illiquid Stock Options at BSE. Page 3 of 15 Noticee. The aforesaid SCN dated March 24, 2022 was dispatched to the Noticee via SPAD.
Adjudication Order in respect of Sunil Kumar Lodha HUF in the matter of Illiquid Stock Options at BSE. Page 4 of 15 regarding settlement scheme given to the Noticee in the Supplementary SCN is reproduced herein below:
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Source: SecMarx — sebi:Order/SM/S./2023-24/27833. 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.