sebi:Order/VV/NK/2021-22/12390
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Facts / Headnote
Penalty imposed on Noticee for violation of PFUTP Regulations
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15I
- s. 15J
- s. 15F
- s. 28A
- s. 15I(1)
Regulations
- Reg. 3
- Reg. 3(a)
- Reg. 6(1)(c)
Parties
- York Financial Services Private Limited
Holding
The Noticee violated regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations by executing 83 non-genuine reversal trades in 16 stock option contracts on BSE, creating artificial volume of 69,40,000 units, and a penalty of Rs. 5,00,000 was imposed under Section 15HA of the SEBI Act.
Full text
Page 2 of 14 Private Limited (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 alleged to be manipulative, deceptive in nature. 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 14 5. It was inter alia alleged in the SCN that the Noticee, through its trades, had indulged in creating artificial volume of 69,40,000 units through 83 non-genuine trades in 16 stock option contracts during IP.
Page 4 of 14 email dated April 7, 2021 sent to its email id - 'york123@outlook.com'. However, the Noticee again failed to appear before the undersigned on the scheduled date of hearing and also failed to submit any reply in the matter. Thereafter, a final opportunity of hearing was granted to the Noticee through WebEx video conference on June 18, 2021, vide email dated June 8, 2021 sent to its email id - 'york123@outlook.com'. However, the Noticee again failed to appear before the undersigned on the scheduled date of hearing.
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Source: SecMarx — sebi:Order/VV/NK/2021-22/12390. 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.