sebi:Order/VV/VS/2021-22/11989
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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. 19
- s. 15H
- s. 15I
- s. 15J
- s. 15F
- s. 28A
- s. 15I(1)
Regulations
- Reg. 7
- Reg. 3
- Reg. 3(a)
Parties
- Prakash Estates Private Limited
Holding
The Noticee violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations by executing 64 non-genuine reversal trades creating artificial volume in 15 BSE stock option contracts, and is liable to a monetary penalty of Rs. 5,00,000 under Section 15HA of the SEBI Act.
Full text
Page 2 of 16 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 alleged to be manipulative, 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 SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”).
Page 3 of 16 5. It was inter alia alleged in the SCN that the Noticee, through its trades, had indulged in creating artificial volume of 1,34,00,500 units through 64 non-genuine trades in 15 stock option contracts during IP.
Page 4 of 16 appeared as the Authorised Representative (‘AR’) of the Noticee in the hearing. During the course of hearing, the AR reiterated the written submissions dated April 12, 2021 submitted by the Noticee.
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Source: SecMarx — sebi:Order/VV/VS/2021-22/11989. 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.