sebi:Order/VV/HS/2019-20/5749

SEBI · SEBI · 2018-09-10 · 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. 15H
• s. 15J
• s. 15F
• s. 28A

Regulations

• Reg. 4
• Reg. 3
• Reg. 2

Parties

• Bajrangbali Re-roll(P) Limited

Holding

The Noticee violated Regulations 3(a), (b), (c), (d) and 4(1), 4(2)(a) of the PFUTP Regulations by executing non-genuine reversal trades in illiquid BSE stock options creating artificial volume, 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 Bajrangbali Re-roll(P) Limited. Page 2 of 22 1992, (hereinafter referred to as “SEBI Act”) read with Section 15-I (1) of the SEBI Act and Rule 3 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 (hereinafter referred to as “Adjudication Rules”) to conduct adjudication proceedings inter-alia in respect of the Noticee, in the manner specified under Rule 4 of the Adjudication Rules read with Section 15-I (1) and (2) of the SEBI Act, and if satisfied that penalty is liable, to impose such

Adjudication Order in respect of Bajrangbali Re-roll(P) Limited. Page 3 of 22 6. Subsequently, the Noticee vide its letter dated October 10, 2019 filed reply to the SCN. The relevant excerpts of the aforesaid reply of the Noticee are inter-alia reproduced hereunder.

Adjudication Order in respect of Bajrangbali Re-roll(P) Limited. Page 4 of 22 due to lower liquidity and wider spreads. The SCN records that the contracts in which the Noticee dealt were illiquid and therefore the spreads were bound to be wide resulting in so called significant price difference in view of SEBI, which is also appreciated by the RDD issued by SEBI. However this knowledge has been given a good bye while issuing the SCN and wrongly goes on to alleging that these trades as non-genuine. Such a

Source: SecMarx — sebi:Order/VV/HS/2019-20/5749. 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.