sebi:Order/VV/VS/2020-21/10532
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Facts / Headnote
Show Cause Notice dated September 5, 2018 disposed of; proceedings terminated in terms of Regulation 23(1) of the Settlement Regulations following approved settlement.
Provisions invoked
- s. 15
- s. 19
- s. 15H
Regulations
- Reg. 3(a)
- Reg. 23
- Reg. 26
Parties
- Quest Partners
Holding
The Adjudicating Officer disposed of the Show Cause Notice dated September 5, 2018 against Quest Partners without further inquiry, in terms of Regulation 23(1) of the Settlement Regulations, pursuant to SEBI's Settlement Order dated January 14, 2021.
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 Quest Partners (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 492 non-genuine trades in 83 contracts resulting in creation of an artificial volume of 2,75,50,000 units in the said 83 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 of the SEBI Act for the violations alleged to have been committed by the Noticee. 5. During the course of proceedings, vide letter dated September 17, 2018, the Noticee submitted that it had decided to file an Application for Settlement under SEBI (Settlement Proceedings) Regulations, 2018. Subsequently, an intimation was also received from the concerned department of SEBI communicating that an application for settlement in the prescribed “form A” from the Noticee was received and that the Adjudicating Officer was requested to keep the proceedings in abeyance till disposal of the settlement application.
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/2020-21/10532. 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.