sebi:Order/VV/JR/2019-20/5161
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Facts / Headnote
Penalty of Rs 5,00,000 imposed on the Noticee under Section 15HA of the SEBI Act for violation of Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations, 2003
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 28A
Regulations
- Reg. 4
- Reg. 3
- Reg. 2
- Reg. 3(a)
Parties
- Vandna Arora
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 creating artificial volume, and is liable to a monetary penalty of Rs 5,00,000 under Section 15HA of the SEBI Act.
Full text
In the matter of dealings in Illiquid Stock Options at BSE Page 2 of 17 2. SEBI conducted an investigation into the trading activities of certain entities in ISO, BSE for period April 1, 2014 to September 30, 2015 (hereinafter referred to as “Investigation Period”/IP”). Pursuant to investigation, it was observed that during IP, total 2,91,643 trades comprising substantial 81.38% of all the trades executed in Stock Options of BSE were non-genuine trades. The aforesaid non- genuine trades resulted in creation of artificial volume to the tune of 826.21 crore units or 54.68% of the total market volume in Stock Options segment of BSE during the IP. It was also noted that said non-genuine trades were not restricted to any specific contract or between any specific set of entities.
In the matter of dealings in Illiquid Stock Options at BSE Page 3 of 17 was reversed at `20.5 per unit on the same day between same counter parties at 14:41:21 i.e. within 5 seconds.
In the matter of dealings in Illiquid Stock Options at BSE Page 4 of 17 8. In order to comply with the principles of natural justice an opportunity of personal hearing was given to the Noticee on March 6, 2019 vide letter dated February 5,
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Source: SecMarx — sebi:Order/VV/JR/2019-20/5161. 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.