sebi:Order/VV/AS/2023-24/28836-28835
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Facts / Headnote
Violation established; penalty of Rs 5,00,000 imposed under Section 15HA of SEBI Act
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 28A
Regulations
- Reg. 3
- Reg. 2(1)(c)
- Reg. 4(2)
- Reg. 3(a)
- Reg. 26
- Reg. 2(1)(c)(2)
- Reg. 2(1)(c)(7)
- Reg. 2(1)(c)(8)
Parties
- Kapil Taneja
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 BSE stock options, and is liable to a monetary penalty of Rs 5,00,000 under Section 15HA of the SEBI Act.
Full text
Adjudication Order in respect of Kapil Taneja in the matter of dealings in Illiquid Stock Options on BSE Page 2 of 20 in the year 2018. The investigation findings revealed that 14,720 entities were involved in executing non-genuine trades in BSE’s stock options segment during the investigation period and also revealed that of all trades executed in the stock options segment of BSE during the Investigation Period, 81.38% of the trades, that is 2,91,643 trades, were trades which involved a reversal of buy and sell positions by the clients and counterparties in a contract. It was observed that, Kapil Taneja (herein after referred to as “Noticee”) was one such various entities whose reversal trades involved squaring off transactions with significant difference in the sell value and buy value of the transactions. 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 SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”).
Adjudication Order in respect of Kapil Taneja in the matter of dealings in Illiquid Stock Options on BSE Page 3 of 20 adopting any other alternative dispute resolution process with regard to the Illiquid Stock Options”.
Adjudication Order in respect of Kapil Taneja in the matter of dealings in Illiquid Stock Options on BSE Page 4 of 20 proceedings to the noticees and at the same time would help to clear the backlog of these pending matters before various AOs”.
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Source: SecMarx — sebi:Order/VV/AS/2023-24/28836-28835. 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.