sebi:WTM/RKA/ISD/102/2016
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Confirmed the directions issued vide the ad interim ex-parte order dated August 20, 2015 against the entities, subject to interim relief(s) provided earlier; order to continue in force till further directions.
Provisions invoked
- s. 11
- s. 11(4)
- s. 19
- s. 80P
Holding
The Whole Time Member confirmed the ad interim ex-parte order dated August 20, 2015 restraining the noticees from the securities market, holding that the prima facie findings of manipulative reversal trades in illiquid stock options cannot be revoked or modified at the confirmatory stage pending completion of investigation.
Full text
Order in the matter of Illiquid Stock Options Page 2 of 29 24 Gandiv Investment Private Limited AACCG3017C Mr. Pankaj Bhatt Tejas Trivedi 25 Rashi Commercial Company AAAFR1026K Mr. Vinay Chauhan 26 Nikhil Jalan / Priyasha Meven AADCP2042F Mr. Joby Mathews 27 Rakesh K Baid / Gee Bee Securities AACCG3141P KRCV Sheshachalam 28 Open Futures And Derivatives Private Limited AABCO1139Q Adv Somasekhar Sundaresan, Adv. Ravi Chandra Hegde Adv Dhaval Kothari Ms.Yugandhara Kanoikar 29 Pragya Commodities Private Limited AABCP5764C Mr. Rajesh Khandelwal 30 Nouvelle Advisory Services Private AADCN1774A Mr. K.C.Jacob 31 Gck Stock Private Limited AAACA5560C Mr. J.J.Bhatt 32 Om Sales Corporation AARPY4343F Mr. Prakash Shah 33 Prompt Commodities Ltd AADCP1910G Mr. Vinay Chauhan 34 Gurmeet Singh AAQPS9561E Adv Deepika Vijay Sawhney Angad Singh Mr. Gurmeet Singh 35 N M Impex Pvt. Ltd. AABCN0541M NA 36 Vision Sponge Iron Pvt. Ltd. AABCV4791R Mr. Ravichandra Hegde Mr. Dhaval Kothari Ms. Yugandhara Khanwailkar 37 Umang Nemani ABOPN7213K NA 38 Vsp Udyog Pvt. Ltd. AABCV6318G Mr. Ravichandra Hegde Mr. Dhaval Kothari Ms. Yugandhara Khanwailkar 39 Shir Commodities & Futures (P) Ltd. AAACU7902J Mr. Prakash Shah 40 Sureshine Vintrade Pvt Ltd AAUCS1804K NA 41 Motisons Commodities Pvt. Ltd. AADCM7184M Mr. Prakash Shah 42 Evergrowing Iron & Finvest Pvt. Ltd. AAACE1287C Mr. Abhishek Borgikar 43 Rajbanshi Trading AQEPR0750Q NA 44 Tradebulls Enterprise Pvt. Ltd. / Buddhipriya Enterprises (P) Limited AAECT2124M N
Order in the matter of Illiquid Stock Options Page 3 of 29 56 Deepak Natvarlal Pankhiyani Huf AAJHP3250L NA 57 Kirti Ramji Kothari AAEPK3216C Mr. Vinay Chauhan 58 Umesh Malani BDHPM5310A Mr. Ravichandra Hegde Mr. Dhaval Kothari Ms. Yugandhara Khanwailkar
Order in the matter of Illiquid Stock Options Page 4 of 29 in the interim order. (d) The Noticee does not have any link/ nexus/ relationship/ connection/ dealing/ collusion/ arrangement or agreement with any of the entities against whom the interim order has been passed. (e) They have not indulged in any act which creates false or misleading appearance of trading. (f) The allegations are levelled only by taking their trades together with the trades of other entities which are not related/connected to them. Hence, the allegations are merely based on presumption and surmise and does not sustain. (g) The trading system is anonymous and automated and the counterparties could not be identified. (h) SEBI has merely selected persons/entities which made a profit/loss of more than ₹ 5 Cr. in the stock option segment and no allegations were made in the interim order against persons/entities who made a profit/ loss of less than ₹ 5 Cr. (i) All their trades were legal since they were in the normal course of business and bonafide. (j) Since they had traded in diversified options which were illiquid in nature, it is probably the reason that their trading could contribute up to 70% to 100% of total traded volume for the contracts. (k) Prices above/below the intrinsic value are irrelevant and cannot be used to substantiate any allegation against them. (l) The prices above/below the intrinsic value cannot be sole ground to substantiate the allegation of deliberate attempt to make loss. Intrin
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/RKA/ISD/102/2016. 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.