sebi:Order/VV/NK/2023-24/28814

SEBI · SEBI · 2018-04-05 · Vijayant Kumar Verma, Adjudicating Officer

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Facts / Headnote

Violation established; penalty of Rs.5,00,000 imposed under Section 15HA

Provisions invoked

• s. 15
• s. 15H
• s. 15J
• s. 28A

Regulations

• Reg. 3
• Reg. 2(1)(c)
• Reg. 4(2)
• Reg. 3(a)
• Reg. 26
• Reg. 2(1)(c)(2)
• Reg. 2(1)(c)(7)
• Reg. 2(1)(c)(8)

Parties

• Nalini Sanwal

Holding

Noticee executed non-genuine reversal trades in illiquid stock options violating Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations and is liable to monetary penalty of Rs.5,00,000 under Section 15HA of SEBI Act.

Full text

Adjudication Order in respect of Nalini Sanwal in the matter of dealings in Illiquid Stock Options on BSE Page 2 of 15 significant difference in the sell value and buy value of the transactions. In view of the same, SEBI initiated adjudication proceedings against 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 relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”).

Adjudication Order in respect of Nalini Sanwal in the matter of dealings in Illiquid Stock Options on BSE Page 3 of 15 7. It was observed, that some of the entities against whom Orders were passed in the adjudication proceedings appealed before the Hon’ble SAT. During the course of the hearing in a group of appeals, Hon’ble SAT, vide its Order dated May 13, 2022, inter-alia, held that “SEBI should reconsider and seriously give a thought in coming out with a fresh Scheme under Clause 26 of the Settlement Regulations, 2018. Such scheme can be a onetime scheme for this class of person. The terms of settlement should be attractive so that it could attract the noticees/entities to come forward and settle the matter which will ameliorate the harassment of penalty proceedings to the noticees and at the same time would help to clear the backlog of these pending matters before various AOs”.

Adjudication Order in respect of Nalini Sanwal in the matter of dealings in Illiquid Stock Options on BSE Page 4 of 15 Adjudication Rules to inquire and adjudge under the provisions of Section 15HA of SEBI Act, the aforesaid alleged violations by Noticee. Subsequently, undersigned was appointed as AO vide order dated March 17, 2023 and communique dated March 17, 2023.

Source: SecMarx — sebi:Order/VV/NK/2023-24/28814. 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.