sebi:Order/VV/DD/2023-24/28753
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Facts / Headnote
Violation established ex-parte; monetary penalty imposed
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
- Shah & Shah
Holding
Noticee Shah & Shah violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations by executing non-genuine reversal trades in illiquid stock options on BSE and is liable for monetary penalty under Section 15HA of the SEBI Act, with penalty of Rs.5,00,000 imposed.
Full text
Adjudication Order in respect of Shah & Shah in the matter of dealings in Illiquid Stock Options on BSE Page 2 of 17 significant difference in the sell value and buy value of the transactions. In view of the same, SEBI initiated adjudication proceedings against 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 Shah & Shah in the matter of dealings in Illiquid Stock Options on BSE Page 3 of 17 7. It was observed, that some of the entities against whom Orders were passed in the adjudication proceedings appealed before the Hon’ble SAT. During the course of the hearing in a group of appeals, Hon’ble SAT, vide its Order dated May 13, 2022, inter-alia, held that “SEBI should reconsider and seriously give a thought in coming out with a fresh Scheme under Clause 26 of the Settlement Regulations, 2018. Such scheme can be a onetime scheme for this class of person. The terms of settlement should be attractive so that it could attract the noticees/entities to come forward and settle the matter which will ameliorate the harassment of penalty proceedings to the noticees and at the same time would help to clear the backlog of these pending matters before various AOs”.
Adjudication Order in respect of Shah & Shah in the matter of dealings in Illiquid Stock Options on BSE Page 4 of 17 3 of Adjudication Rules vide order dated June 21, 2021 to inquire into and adjudge under Section 15HA of the SEBI Act, the alleged violations of the aforesaid provisions of the PFUTP Regulations by Noticee. The appointment of the AO was communicated vide communique dated July 27, 2021.
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Source: SecMarx — sebi:Order/VV/DD/2023-24/28753. 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.