sebi:Order/VV/AA/2021-22/11983
Facts / Headnote
Adjudication proceedings initiated against Noticee for alleged non-genuine trades in illiquid stock options at BSE; SCN not dropped; fit case for imposition of monetary penalty (final penalty amount not stated in excerpt)
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 15F
- s. 28A
Regulations relied on
- SEBI (PFUTP) Regulations, 2003 — 3(a)
- SEBI (PFUTP) Regulations, 2003 — 4(1)
Parties
- Capony Consulting
Holding
The Adjudicating Officer held that the Show Cause Notice does not deserve to be dropped despite the Noticee's objections regarding delay and non-supply of documents, and found it a fit case for imposition of monetary penalty for executing 67 non-genuine trades in 10 stock option contracts during the investigation period 01/04/2014 to 30/09/2015.
Full text
Adjudication Order in respect of Capony Consulting Page 2 of 24 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 Capony Consulting Page 3 of 24 6. The SCN issued to the Noticee was sent via Speed Post Acknowledgement Due and on its email id: deepakpankhi@gmail.com and caponyconsulting@gmail.com. Noticee vide letter dated December 17, 2018 replied to the SCN. following are the excerpts of Noticee’s letter dated December 17, 2018:
Adjudication Order in respect of Capony Consulting Page 4 of 24 the Noticee has not been a party to any kind of illegal and unlawful act, as alleged against the Noticee or otherwise or at all on account of alleged trading in BSE Option Segment on anonymous online trading system which is also displaying all such information relating to trade in public domain on real time basis. It shall be appreciated that the information displayed on BOLT with respect to alleged trades and trading history available in public domain, equally nurtures and meets with the requisition of investor wherein question of creation of artificial volume or misleading appearance does not arise at all.
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Source: SecMarx — sebi:Order/VV/AA/2021-22/11983. 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.