Sebi fines Rs. 5 lakh on bogus trading in Illiquid Stock Options
BEFORE THE ADJUDICATING OFFICER
SECURITIES AND EXCHANGE BOARD OF INDIA
The Text of the Order as follows :
43. After taking into consideration the nature and gravity of the violations established in the preceding paragraphs and in exercise of the powers conferred upon me under Section 15-I of the SEBI Act, 1992 read with Rule 5 of the Inquiry Rules, 1995, I hereby impose a penalty of Rs. 5,00,000/- (Rupees Five Lakh Only) on the Noticee i.e., Mr. Pradeep Kumar Kayan, under Section 15HA of the SEBI Act, for indulging in execution of reversal trades in Stock Options with same entities on the same day, thereby creating artificial volume, leading to false and misleading appearance of trading in the illiquid stock options at BSE. I am of the view that the said penalty is commensurate with the lapse/omission on the part of the Noticee.
44. Mr. Pradeep Kumar Kayan shall remit / pay the said amount of penalty within 45 days of receipt of this order either by way of Demand Draft in favour of “SEBI -Penalties Remittable to Government of India”, payable at Mumbai, OR through online payment facility available on the SEBI website www.sebi.gov.inon the following path, by clicking on the payment link.
ENFORCEMENT → Orders→Orders of AO →PAY NOW
45. Mr. Pradeep Kumar Kayan shall forward said Demand Draft or the details / confirmation of penalty so paid to the “The Division Chief, Division of Regulatory Action-2, Enforcement Department (EFD1 – DRA I), Securities and Exchange Board of India, SEBI Bhavan, Plot No. C –7, “G” Block, Bandra Kurla Complex, Bandra (E), Mumbai –400 051”. Mr. Pradeep Kumar Kayan shall provide the following details while forwarding DD/ payment information:
a) Name and PAN of the entity
b) Name of the case / matter
c) Purpose of Payment – Payment of penalty under AO proceedings
d) Bank Name and Account Number
e) Transaction Number
46. In the event of failure to pay the said amount of penalty within 45 days of the receipt of this Order, recovery proceedings may be initiated under Section 28A of the SEBI Act for realization of the said amount of penalty along with interest thereon, inter alia, by attachment and sale of movable and immovable properties.
47. In terms of rule 6 of the Inquiry Rules, 1995, copies of this order are being sent to the Noticee i.e., Mr. Pradeep Kumar Kayan and also to SEBI.
B J Dilip
Adjudicating Officer
October 26, 2020
Mumbai
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