sebi:Order/SU/VA/2022-23/16017

SEBI · SEBI · 2021-04-30 · SAREENA P U, Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Provisions invoked

• s. 15
• s. 15H
• s. 15J
• s. 11C
• s. 15F
• s. 28A

Regulations

• Reg. 3
• Reg. 2(1)(c)
• Reg. 4(1)
• Reg. 3(a)

Parties

• Priti Raika

Holding

The Noticee Priti Raika was found to have executed non-genuine reversal trades in illiquid stock option contract KOTB15APR1350.00CEW4 on BSE, creating artificial volume of 62,500 units, in contravention of PFUTP Regulations, 2003.

Full text

Adjudication Order in respect of Priti Raika in the matter of dealings in Illiquid Stock Options at BSE Page 2 of 24 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”). APPOINTMENT OF ADJUDICATING OFFICER

Adjudication Order in respect of Priti Raika in the matter of dealings in Illiquid Stock Options at BSE Page 3 of 24 S. No . Contract Name Avg . Buy Rat e (Rs. ) Total Buy Volu me (no. of units ) Avg . Sell Rat e (Rs. ) Total Sell Volu me (no. of units ) % of Non Genu ine trade s of Notic ee in the contr act to Notic ee’s Total trade s in the Cont ract % of Non Genu ine trade s of Entit y in the contr act to Total trade s in the Cont ract % of Artifici al Volum e gener ated by Notice e in the contra ct to Notice e’s Total Volum e in the Contra ct % of Artifi cial Volu me gene rated by Notic ee in the contr act to Total Volu me in the Cont ract 1 KOTB15APR135 0.00CEW4 3 31,25 0 19 31,25 0 100% 33.33 % 100% 33.33 %

Adjudication Order in respect of Priti Raika in the matter of dealings in Illiquid Stock Options at BSE Page 4 of 24 (c) Similarly, while reversing the trades on the same day within a gap of 4 seconds, it is also observed that the Noticee placed a limit order of Rs.19 per unit to sell 31,250 units at 14:00:21 hrs on March 30, 2015, at the same time as the limit

Source: SecMarx — sebi:Order/SU/VA/2022-23/16017. 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.