sebi:Order/VV/VS/2020-21/10531
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Facts / Headnote
Show Cause Notice dated August 10, 2018 disposed of in terms of Regulation 23(1) of the Settlement Regulations, pursuant to approved settlement.
Provisions invoked
- s. 15
- s. 19
- s. 15H
Regulations
- Reg. 3(a)
- Reg. 23
- Reg. 26
Parties
- Open Futures and Derivatives Private Limited
Holding
The Adjudicating Officer disposed of the Show Cause Notice dated August 10, 2018 against Open Futures and Derivatives Private Limited in terms of Regulation 23(1) of the Settlement Regulations, holding that no further inquiry was required under Rule 4(3) of the Adjudication Rules given the approved settlement.
Full text
Page 2 of 4 crore units or 54.68% of the total market volume in stock options segment of BSE during the Investigation Period. It was observed that Open Futures and Derivatives Private Limited (hereinafter referred to as the “Noticee”) was one of the various entities which indulged in execution of reversal trades in stock options segment of BSE during the Investigation Period. Such trades were observed to be non-genuine in nature and created false or misleading appearance of trading in terms of artificial volumes in stock options and therefore were alleged to be manipulative and deceptive in nature. It was observed that the Noticee executed 282 non-genuine trades in 100 contracts resulting in creation of an artificial volume of 4,47,21,000 units in the said 100 contracts. 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 SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”).
Page 3 of 4 and why penalty should not be imposed upon the Noticee under Section 15HA of the SEBI Act for the violations alleged to have been committed by the Noticee.
Page 4 of 4 8. In terms of the provisions of Rule 6 of the Adjudication Rules, a copy of this order is being sent to the Noticee and also to the Securities and Exchange Board of India.
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Source: SecMarx — sebi:Order/VV/VS/2020-21/10531. 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.