sebi:Order/VV/NK/AK/2021-22/15786
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Facts / Headnote
Penalty of Rs 5,00,000 imposed on Noticee
Provisions invoked
- s. 11B
- s. 11
- s. 15
- s. 19
- s. 15H
- s. 15I
- s. 15F
- s. 28A
Regulations
- Reg. 3
- Reg. 3(a)
Parties
- Sarita Agrawal
Holding
The Noticee violated regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations by executing 6 non-genuine reversal trades in 3 illiquid stock option contracts creating artificial volume, and is liable to monetary penalty of Rs 5,00,000 under section 15HA of the SEBI Act.
Full text
Adjudication Order in respect of Sarita Agrawal Page 2 of 19 in the matter of dealings in Illiquid Stock Options at BSE options and therefore were alleged to be manipulative and 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 the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (hereinafter referred to as the “PFUTP Regulations”).
Adjudication Order in respect of Sarita Agrawal Page 3 of 19 in the matter of dealings in Illiquid Stock Options at BSE Adjudication Order in respect of generating artificial volumes in stock options segment of the BSE during the Investigation Period.
Adjudication Order in respect of Sarita Agrawal Page 4 of 19 in the matter of dealings in Illiquid Stock Options at BSE and 4.65% respectively to the total trades that have taken place in the contracts. iii. Substantial 100% of the volume generated by the Noticee in each of the above contracts was artificial volume. Further, Percentage of artificial volume generated by the Noticee in the contract to the total volume in the contract was 1.91%, 56.82% and 5.38% respectively in the above contracts. iv. Alleged non genuine trades executed by the Noticee in above contracts had significant difference in buy rates and sell rates considering that the trades were reversed on same day. v. By indulging in execution of aforesaid non-genuine reversal trades, the Noticee has violated regulations 3(a), (b),(c),(d) and 4(1), 4(2)(a) of the PFUTP Regulations. vi. The aforesaid alleged violations, if established, make the Noticee liable for monetary penalty under section 15HA of the SEBI Act.
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Source: SecMarx — sebi:Order/VV/NK/AK/2021-22/15786. 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.