sebi:Order/VV/JR/2019-20/5533
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Facts / Headnote
Penalty imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 28A
Regulations
- Reg. 4
- Reg. 3
- Reg. 2
- Reg. 3(a)
Parties
- Toplight Commercials Limited
Holding
The Noticee violated Regulations 3(a), (b), (c), (d) and 4(1), 4(2)(a) of the PFUTP Regulations by executing 140 non-genuine reversal trades in 39 illiquid stock option contracts creating artificial volume of 2,09,92,000 units. A monetary penalty of Rs. 7,10,000 under Section 15HA of the SEBI Act was imposed on Toplight Commercials Limited.
Full text
In the matter of dealings in Illiquid Stock Options at BSE Page 2 of 18 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 18 reversed at `3.5 per unit on the same day between same counter parties at 13:18:14.
In the matter of dealings in Illiquid Stock Options at BSE Page 4 of 18 8. The Noticee vide letter dated November 20, 2018 sought inspection of documents. SEBI, vide email dated February 11, 2019 informed the Noticee that an opportunity of inspection of documents is given to it on February 18, 2019. Accordingly, on the scheduled date, the Authorised Representative of Noticee inspected the documents.
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Source: SecMarx — sebi:Order/VV/JR/2019-20/5533. 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.