sebi:Order/VV/NK/2023-24/28815
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Facts / Headnote
Violation established; penalty of Rs.5,00,000 imposed under Section 15HA of SEBI Act
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
- N.L. Goenka& Sons-HUF
Holding
Noticee violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations by executing non-genuine reversal trades in illiquid stock options on BSE and is liable to monetary penalty of Rs.5,00,000 under Section 15HA of SEBI Act.
Full text
Adjudication Order in respect of N.L. Goenka& Sons-HUF in the matter of dealings in Illiquid Stock Options on BSE Page 2 of 18 the investigation period and also revealed that of all trades executed in the stock options segment of BSE during the Investigation Period, 81.38% of the trades, that is 2,91,643 trades, were trades which involved a reversal of buy and sell positions by the clients and counterparties in a contract. It was observed that, N.L. Goenka& Sons-HUF (herein after referred to as “Noticee”) was one such various entities whose reversal trades involved squaring off transactions with 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 N.L. Goenka& Sons-HUF in the matter of dealings in Illiquid Stock Options on BSE Page 3 of 18
Adjudication Order in respect of N.L. Goenka& Sons-HUF in the matter of dealings in Illiquid Stock Options on BSE Page 4 of 18 Considering the interest of a large number of entities to avail the Scheme, SEBI extended the period of the Scheme till January 21, 2023 vide public notice dated November 22,
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Source: SecMarx — sebi:Order/VV/NK/2023-24/28815. 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.