sebi:Order/VV/NK/2021-22/15000
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Facts / Headnote
Violation established ex-parte and penalty of Rs. 5,00,000 imposed on the Noticee
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 4
- Reg. 3
- Reg. 2
- Reg. 3(a)
Parties
- SARITA GUPTA
Holding
The Noticee violated Regulations 3(a), (b), (c), (d) and 4(1), 4(2)(a) of PFUTP Regulations, 2003 by executing non-genuine reversal trades in illiquid stock options at BSE creating artificial volume, and is liable to a penalty of Rs. 5,00,000 under Section 15HA of the SEBI Act.
Full text
Adjudication Order in respect of Sarita Gupta in the matter of dealings in Ill-liquid Stock Options at BSE Page 2 of 19 2. Pursuant to investigation, it was observed that during the investigation period, total 2,91,744 trades comprising substantial 81.40% of all the trades executed in Stock Options Segment of BSE were non-genuine trades. The aforesaid non-genuine trades resulted into 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 investigation period.
Adjudication Order in respect of Sarita Gupta in the matter of dealings in Ill-liquid Stock Options at BSE Page 3 of 19 5. Accordingly, a Settlement Scheme was framed under the SEBI (Settlement Proceedings) Regulations, 2018, which provided one-time opportunity for settlement of proceedings in the Illiquid Stock Options matter. The said scheme was kept open from August 01, 2020 till December 31, 2020. Adjudication proceedings were initiated against those entities who had not availed of the opportunity of settlement.
Adjudication Order in respect of Sarita Gupta in the matter of dealings in Ill-liquid Stock Options at BSE Page 4 of 19 cause as to why an inquiry should not be held against her in terms of rule 4 of the Adjudication Rules and penalty be not imposed under Section 15HA of the SEBI Act for the violation of regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations, 2003. The SCN sent to the Noticee was served upon the Noticee via Speed Post Acknowledgement Due.
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Source: SecMarx — sebi:Order/VV/NK/2021-22/15000. 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.