sebi:Order/VV/AK/2021-22/14655

SEBI · SEBI · 2021-07-27 · Vijayant Kumar Verma, Adjudicating Officer

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Facts / Headnote

Violation established; penalty of Rs 5,00,000 imposed under Section 15HA

Provisions invoked

• s. 15
• s. 19
• s. 11B
• s. 11
• s. 15H
• s. 15F
• s. 28A

Regulations

• Reg. 3
• Reg. 2(1)(c)
• Reg. 3(a)

Parties

• Shivsakti Vyapaar Private Limited

Holding

The Noticee violated regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations by executing 16 non-genuine synchronized reversal trades in 7 illiquid BSE stock option contracts creating artificial volume of 1,20,86,000 units. A monetary penalty of Rs 5,00,000 was imposed on Shivsakti Vyapaar Private Limited under Section 15HA of the SEBI Act.

Full text

Adjudication Order in respect of Shivsakti Vyapaar Private Limited Page 2 of 20 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 Shivsakti Vyapaar Private Limited Page 3 of 20 in the matter of dealings in Illiquid Stock Options at BSE

Adjudication Order in respect of Shivsakti Vyapaar Private Limited Page 4 of 20 in the matter of dealings in Illiquid Stock Options at BSE 24.24% 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 on 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.

Source: SecMarx — sebi:Order/VV/AK/2021-22/14655. 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.