sebi:Order/VR/SS/2022-23/15806

SEBI · SEBI · 2018-04-05 · Venkateswaran Ramakrishnan, Adjudicating Officer

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

Facts / Headnote

Penalty imposed on the Noticee for violations of PFUTP Regulations, 2003

Provisions invoked

• s. 15
• s. 19
• s. 15H
• s. 15J
• s. 11C
• s. 28A

Regulations

• Reg. 3
• Reg. 2(1)(c)
• Reg. 2(1)
• Reg. 4(2)(a)
• Reg. 3(a)
• Reg. 2(1)(c)(8)

Parties

• Vinit Jagdishprasad Kedia

Holding

The Noticee violated Regulations 3(a), 3(b), 3(c), 3(d), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003 by executing non-genuine reversal trades in illiquid stock options contracts, and a penalty of ₹5,00,000 was imposed under Section 15HA of the SEBI Act.

Full text

2 Adjudication Order in respect of Vinit Jagdishprasad Kedia in the matter of Dealing in Illiquid Stock Options at BSE Ltd. options contracts in the equity derivatives segment of BSE were trades which involved reversal of buy and sell positions by the clients and counterparties in a contract. Further, out of 21,652 entities that had traded in stock options contracts in the equity derivatives segment of BSE during the investigation period, 14,720 entities were involved in executing such reversal trades/non-genuine trades.

3 Adjudication Order in respect of Vinit Jagdishprasad Kedia in the matter of Dealing in Illiquid Stock Options at BSE Ltd. with Section 15-I(1) of the SEBI Act and Rule 3 of the Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 (hereinafter referred to as the “SEBI Rules”) read with Section 19 of the SEBI Act, appointed the undersigned as the Adjudicating Officer vide order dated April 30, 2021, to enquire into and adjudge under Section 15 HA of the SEBI Act the alleged violations by the Noticee. The proceedings of appointment were communicated to the undersigned vide Communique dated June 28, 2021 to conduct the Adjudication Proceedings in the manner specified under Rule 4 of the SEBI Rules read with sub- sections (1) and (2) of Section 15-I of the SEBI Act.

4 Adjudication Order in respect of Vinit Jagdishprasad Kedia in the matter of Dealing in Illiquid Stock Options at BSE Ltd. at ₹ 2.60 per unit and again at 13:39:59.02 hrs for 5,00,000 units at ₹ 2.65 per unit. At 14:34:27.27 hrs, the Noticee executed a buy trade with the same counterparty, for 3,04,000 units at ₹ 0.55. It is alleged that three trades for 6,08,000 units (total 8,08,000 units from three trades) executed by the Noticee in the said contract on February 02, 2015 were non-genuine.

Source: SecMarx — sebi:Order/VR/SS/2022-23/15806. 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.