sebi:Order/VV/AK/2021-22/14396
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Violation of regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations established; monetary penalty under section 15HA of the SEBI Act attracted
Provisions invoked
- s. 15
- s. 19
- s. 11B
- s. 11
- s. 15H
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 3
- Reg. 2(1)(c)
- Reg. 3(a)
Parties
- Shiva Polytubes Private Limited
Holding
The Noticee's trading in illiquid stock options at BSE, comprising 18 non-genuine reversal trades in 9 contracts generating 24,36,000 units of artificial volume, violated regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations and attracts monetary penalty under section 15HA of the SEBI Act.
Full text
Adjudication Order in respect of Shiva Polytubes Private Limited Page 2 of 25 in the matter of dealings in Illiquid Stock Options at BSE volumes in stock 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 Shiva Polytubes Private Limited Page 3 of 25 in the matter of dealings in Illiquid Stock Options at BSE trading, generating artificial volumes in stock options segment of the BSE during the Investigation Period.
Adjudication Order in respect of Shiva Polytubes Private Limited Page 4 of 25 in the matter of dealings in Illiquid Stock Options at BSE 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 significant 73.68% to 100% 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 within five minutes of the same day. e. By indulging in execution of aforesaid non-genuine reversal trades, the Noticee has violated regulations 3(a),(b),(c),(d) and 4(1), 4(2)(a) of the PFUTP Regulations. f. The aforesaid alleged violations, if established, make the Noticee liable for monetary penalty under section 15HA of the SEBI Act.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:Order/VV/AK/2021-22/14396. 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.