sebi:Order/VV/AA/2021-22/11954
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Facts / Headnote
Violation established; monetary penalty imposed
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 4
- Reg. 3
- Reg. 2
- Reg. 5
- Reg. 3(a)
- Reg. 6(1)(c)
Parties
- Binani Metals Ltd now known as Binani Industries Limited
Holding
The Noticee violated Regulations 3(a), (b), (c), (d) and 4(1), 4(2)(a) of the PFUTP Regulations by executing reversal trades in illiquid stock options at BSE creating artificial volume and false appearance of trading, and a penalty of Rs. 6,30,000 under Section 15HA of the SEBI Act was imposed.
Full text
Adjudication Order in respect of Binani Metals Ltd now known as Binani Industries Limited Page 2 of 21 BSE during the Investigation Period. Such trades were observed to be non-genuine in nature and created false or misleading appearance of trading in terms of artificial volumes in stock options and therefore alleged to be manipulative, deceptive in nature. In view of the same, SEBI initiated adjudication proceedings against Noticee for the alleged violation of the provisions of Regulation 3 (a), (b), (c), (d) and 4 (1), 4 (2) (a) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”) for carrying out alleged reversal of trades in illiquid stock options at BSE Limited (hereinafter referred to as “BSE”) with same entities on the same day.
Adjudication Order in respect of Binani Metals Ltd now known as Binani Industries Limited Page 3 of 21 6. The SCN issued to the Noticee was sent via Speed Post Acknowledgement Due. Noticee vide letter dated November 16, 2018 replied to the SCN. Vide letter dated November 16, 2018 Noticee has stated the following:
Adjudication Order in respect of Binani Metals Ltd now known as Binani Industries Limited Page 4 of 21 6. Therefore, your Honor is requested to provide us all the documents which will enable us to determine issues (both procedural and substantive) arising out of the SCN including –
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Source: SecMarx — sebi:Order/VV/AA/2021-22/11954. 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.