sebi:Order/VV/NK/2021-22/13274
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Facts / Headnote
Penalty of Rs. 5,00,000 imposed on the Noticee under Section 15HA of the SEBI Act ex parte
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)
Parties
- Vinodkumar M Jain
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 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
Page 2 of 13 (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 13 5. It was inter alia alleged in the SCN that the Noticee, through its trades, had indulged in creation of artificial volume of 21,60,000 units through 10 non- genuine trades in 3 stock option contracts during IP.
Page 4 of 13 8. In view of the above, I am compelled to proceed in the matter against the Noticee ex parte. No reply has been received from the Noticee till the time of this order. I am of the view that principles of natural justice have been complied with in the present matter since opportunities have been provided to the Noticee to submit reply and to appear for hearing, which the Noticee has failed to avail of. Therefore, the present proceedings against the Noticee are undertaken ex-parte on the basis of available documents and information.
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Source: SecMarx — sebi:Order/VV/NK/2021-22/13274. 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.