sebi:Order/VV/AK/2021-22/14384
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Facts / Headnote
Noticee found liable for violation of PFUTP Regulations; penalty imposed (amount not specified in excerpt)
Provisions invoked
- s. 15A
- s. 15
- s. 19
- s. 11B
- s. 11
- s. 15H
- s. 16
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 3
- Reg. 2(1)(c)
- Reg. 3(a)
Parties
- Shivam Chowdhary HUF
Holding
The Noticee was held liable for violating regulations 3(a),(b),(c),(d) and 4(1), 4(2)(a) of the PFUTP Regulations by executing 14 non-genuine reversal trades in 7 illiquid stock option contracts at BSE, creating artificial volume of 5,44,000 units.
Full text
Adjudication Order in respect of Shivam Chowdhary HUF Page 2 of 25 in the matter of dealings in Illiquid Stock Options at BSE options and therefore were alleged to be manipulative and deceptive in nature. In view of the same, SEBI initiated adjudication proceedings against the Noticee for violation of the provisions of regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (hereinafter referred to as the “PFUTP Regulations”).
Adjudication Order in respect of Shivam Chowdhary HUF Page 3 of 25 in the matter of dealings in Illiquid Stock Options at BSE
Adjudication Order in respect of Shivam Chowdhary HUF Page 4 of 25 in the matter of dealings in Illiquid Stock Options at BSE iii. From the above table, following is noted as regard to dealings of the Noticee: a) Substantial 100% trades executed by the Noticee in above contracts were non genuine trades. b) No. of non-genuine trades of the Noticee was significantly high i.e. 100% of total trades executed by the Noticee in the above contracts. Moreover, the said non genuine trade executed by the Noticee contributed 11.11% to 33.33% of the total trades that have taken place in the above contracts. c) Substantial 100% of the volume generated by the Noticee in each of the above contracts, was artificial volume. Further, said artificial volume generated by Noticee also contributed 2.13% to 16.67% of the total volume from the market in above contracts. d) Alleged non genuine trades executed by the Noticee had significant differential in sell rates and buy rates considering that the trades were reversed on same day.
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Source: SecMarx — sebi:Order/VV/AK/2021-22/14384. 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.