sebi:Order/VV/AS/2021-22/15787

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

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Facts / Headnote

Noticee held liable and penalty imposed

Provisions invoked

• s. 15H
• s. 15I
• s. 15J
• s. 15
• s. 15F
• s. 28A

Regulations

• Reg. 3
• Reg. 2(1)(c)
• Reg. 3(a)

Parties

• Mr. Shubham Bansal

Holding

The Noticee violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations by executing non-genuine reversal trades in illiquid stock options. A monetary penalty of Rs. 5,00,000 under Section 15HA of the SEBI Act was imposed on Mr. Shubham Bansal.

Full text

___________________________________________________________________________ Adjudication order in respect of Mr. Shubham Bansal in the matter of dealing in Illiquid Stock Options at BSE Page 2 of 9 further observed that the Noticee, by executing non genuine trades during the relevant period, registered a positive close out difference of ₹9,86,200/- approx. The trades entered by the Noticee were reversed on the same day within a very short span of time with same counterparty at a substantial price difference without any basis for significant change in the contract price which indicates that these trades are artificial and are non-genuine in nature. The summary of dealings of Noticee in such 3 Stock Options contracts is as follows:

___________________________________________________________________________ Adjudication order in respect of Mr. Shubham Bansal in the matter of dealing in Illiquid Stock Options at BSE Page 3 of 9 d. The Noticee has allegedly engaged in the non-genuine transactions in the option segment of BSE for the purpose creating false appearance of trading.

___________________________________________________________________________ Adjudication order in respect of Mr. Shubham Bansal in the matter of dealing in Illiquid Stock Options at BSE Page 4 of 9 4 of the Adjudication Rules and penalty be not imposed under Section 15HA of the SEBI Act for the aforesaid alleged violations. The SCN forwarded via Speed Post Acknowledgement Due (“SPAD”) to the Noticee returned undelivered with remark “left”. Thereafter, the SCN along with annexures was forwarded to the Noticee via digitally signed e-mail dated February 02, 2022 on e-mail id pawanban09@gmail.com (as available on record), in terms of Rule 7(1) of the Adjudication Rules. It may be noted that, 14 days’ time from the date of receipt of the SCN has been provided to the Noticee for filing reply to the SCN.

Source: SecMarx — sebi:Order/VV/AS/2021-22/15787. 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.