sebi:Order/SM/SM/2021-22/14686
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Violation established; penalty of Rs. 5,00,000 imposed under Section 15HA of SEBI Act
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 Agarwal (PAN: AWHPA2913K)
Holding
The Noticee violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations, 2003 by executing two non-genuine reversal trades in contract DIVI15MAR1620.00CE creating artificial volume of 13,000 units. A monetary penalty of Rs. 5,00,000 under Section 15HA of the SEBI Act was imposed.
Full text
Page 2 of 24 positions by the clients and counterparties in a contract on the same day. It was observed that Abhishek Agarwal (PAN: AWHPA2913K) (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 24 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 24 8. The abovementioned reversal trades and volumes are illustrated through the dealings of Noticee in the one contract, viz., “DIVI15MAR1620.00CE” during the investigation period, as follows: (a) During the investigation period, 2 trades for 13,000 units were executed by the Noticee in the said contract on 28/02/2015. (b) While dealing in the said contract on 28/02/2015, at 13:41:09.430916 hrs the Noticee entered into a buy trade with counterparty Kundan Rice Mills Ltd for 6,500 units at Rs. 54 per unit. At 13:46:03.545300 hrs the Noticee entered into a sell trade with the same counterparty, for 6,500 units at Rs. 100.20 per unit. (c) The Noticee’s two trades while dealing in the aforesaid contract during the investigation period allegedly generated artificial volume of 13,000 units, which made up 50% of total market volume in the said contract during this period.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:Order/SM/SM/2021-22/14686. 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.