sebi:Order/VR/SS/2022-23/15829

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

Reviewed by Varun Matlani, Advocate — Securities Lawyer practicing in SAT and SEBI

Facts / Headnote

Alleged violations of PFUTP Regulations considered; adjudication proceedings conducted with findings recorded against the Noticee

Provisions invoked

• s. 15
• s. 19
• s. 15H
• s. 15J
• s. 11C
• s. 28A
• s. 24

Regulations relied on

• SEBI (PFUTP) Regulations, 2003 — 3(a)
• SEBI (PFUTP) Regulations, 2003 — 3(b)
• SEBI (PFUTP) Regulations, 2003 — 3(c)
• SEBI (PFUTP) Regulations, 2003 — 3(d)
• SEBI (PFUTP) Regulations, 2003 — 4(1)
• SEBI (PFUTP) Regulations, 2003 — 4(2)(a)

Parties

• Vinit Kumar Agrawal

Holding

The Noticee's two trades in the UCOB15FEB70.00PE contract on February 13, 2015 constituted reversal/non-genuine trades that generated artificial volume of 4,80,000 units (13.27% of total market volume in the contract), and were found to be deceptive and manipulative in violation of the PFUTP Regulations.

Full text

2 Adjudication Order in respect of Vinit Kumar Agrawal 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 Kumar Agrawal in the matter of Dealing in Illiquid Stock Options at BSE Ltd. 2. APPOINTMENT OF ADJUDICATING OFFICER 7. SEBI, in exercise of the powers conferred under Section 19 of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”) read 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 “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 Kumar Agrawal in the matter of Dealing in Illiquid Stock Options at BSE Ltd. 13, 2015, at 13:17:44.83 hrs, the Noticee entered into a buy trade with counterparty Iserve Solitions & Services Pvt. Ltd. for 2,40,000 units at ₹ 0.15 per unit, which was reversed by a sell trade at 13:57:52.34 hrs with the same counterparty for 2,40,000 units at ₹ 1.40 per unit. It is alleged that two trades for 4,80,000 units executed by the Noticee in the said contract on February 13, 2015 were non-genuine.

Source: SecMarx — sebi:Order/VR/SS/2022-23/15829. 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.