sebi:Order/VV/NK/2023-24/28816
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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)(8)
- Reg. 2(1)(c)(2)
- Reg. 2(1)(c)(7)
Parties
- SWATI BAJAJ
Holding
Noticee SWATI BAJAJ violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations by executing non-genuine reversal trades in illiquid stock options, and a monetary penalty of Rs.5,00,000 under Section 15HA of the SEBI Act was imposed.
Full text
Adjudication Order in respect of SWATI BAJAJ in the matter of dealings in Illiquid Stock Options on BSE Page 2 of 18 segment during 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, SWATI BAJAJ (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 SWATI BAJAJ in the matter of dealings in Illiquid Stock Options on BSE Page 3 of 18 proceedings were initiated against those entities who did not avail the opportunity of settlement.
Adjudication Order in respect of SWATI BAJAJ in the matter of dealings in Illiquid Stock Options on BSE Page 4 of 18 9. I note that SEBI framed the Scheme in accordance with the provisions of the Settlement Regulations and issued a Public Notice dated August 19, 2022, about the Scheme and the modalities for availing the benefit of the Scheme. The Notice was also made available on the website of the BSE. The Scheme was initially kept open for a period of three months commencing from August 22, 2022 to November 21, 2022 (both days inclusive). 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, 2022. A total of 10,980 Noticees availed the benefit of the Scheme and remitted the specified settlement amount respectively. Accordingly, a settlement order was passed on March 08, 2023, settling the matter with respect to 10,980 Noticees.
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Source: SecMarx — sebi:Order/VV/NK/2023-24/28816. 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.