sebi:Order/VV/NK/2020-21/10945
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Facts / Headnote
Disposed of
Provisions invoked
- s. 15
- s. 19
- s. 15H
Regulations
- Reg. 3(a)
- Reg. 23
- Reg. 26
Parties
- Umang Mahendra Shah
Holding
The SCN dated September 17, 2018 issued against Umang Mahendra Shah is disposed of with no further inquiry pursuant to settlement.
Full text
Page 2 of 3 Shah (hereinafter referred to as the “Noticee”) was one of the various entities which indulged in execution of reversal trades in stock options segment of BSE during the Investigation Period. Such trades were observed to be non-genuine in nature and created false or misleading appearance of trading in terms of artificial volumes in stock options and therefore were alleged to be manipulative and deceptive in nature. It was observed that the Noticee executed 328 non-genuine trades in 51 contracts resulting in creation of an artificial volume of 3,24,92,000 units in the said 51 contracts. 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) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”).
Page 3 of 3 5. Meanwhile, SEBI decided to introduce a Settlement Scheme (in terms of Regulation 26 of the SEBI (Settlement Proceedings) Regulations, 2018. I note that SEBI has passed Settlement Order dated January 14, 2021 under Settlement Scheme in terms of regulation 26 of the SEBI (Settlement Proceedings) Regulations, 2018, inter-alia, in respect of 1018 entities including the Noticee, for settlement of proceedings initiated for defaults specified in the SCN subsequent to payment of Rs. 30,22,500/- as settlement amount by the Noticee. As per the terms of settlement mentioned in paragraph 10 of the abovementioned Order, SEBI shall not initiate any enforcement action or continue any enforcement proceedings already initiated against the Noticee for the settled defaults.
3. Shri Sahil Malik was appointed as the Adjudicating Officer under Section 19 read with Section 15-I of the SEBI Act, 1992 (hereinafter referred to as “SEBI Act”) and Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as “Adjudication Rules”) to conduct adjudication proceedings in the manner specified under Rule 4 of Adjudication Rules read with section 15-I(1) and (2) of SEBI Act, and if satisfied that penalty is liable, impose such penalty deemed fit in terms of Rule 5 of Adjudication Rules and Section 15HA of SEBI Act. Pursuant to the transfer of Shri Sahil Malik, vide communique dated August 13, 2019, the undersigned was appointed as the Adjudicating Officer.
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Source: SecMarx — sebi:Order/VV/NK/2020-21/10945. 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.