SEBI disposes of adjudication proceedings against three entities, one individual after settlement

As per two separate orders passed on Thursday, it was alleged that the entities had indulged in non-genuine trades and created a false and misleading appearance of trading in the stock options segment of BSE.

February 12, 2021 / 03:11 PM IST
SEBI headquarters

SEBI headquarters

SEBI has disposed of adjudication proceedings against three entities and an individual after they settled cases related to alleged fraudulent trading activities in illiquid stock options segment on BSE.

The individual Harish Kumar and Aryav Securities Pvt Ltd have settled the case.

As per two separate orders passed on Thursday, it was alleged that the entities had indulged in non-genuine trades and created a false and misleading appearance of trading in the stock options segment of BSE.

The regulator initiated adjudication proceedings and issued show-cause notices to them for alleged violation of provisions of the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations.

SEBI had also come out with a Settlement Scheme under Settlement Regulations in the matter of trading in illiquid stock options on BSE.

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The scheme provided a one-time opportunity for entities against whom adjudication proceedings were approved for involvement in the generation of artificial volumes by executing non-genuine or reversal trades on the same day and which were in violation of PFUTP norms to settle the pending proceedings.

Kumar and Aryav Securities availed the benefit of SEBI's settlement scheme and remitted the settlement charges of Rs 28.67 lakh and Rs 14.72 lakh, respectively.

Since the matter was settled, SEBI decided to dispose of the adjudication proceedings.

In two other separate order, the watchdog disposed of adjudication proceedings against two entities -- Kundan Care Products Ltd and ISL Consulting Ltd -- after they have settled cases related to illiquid stock options segment on BSE.

The two entities had submitted applications for settlement. In January this year, SEBI had passed an order under its settlement scheme in respect of 1,018 entities, including Kundan Care Products and ISL Consulting.

They paid settlement amounts of Rs 42.62 lakh and Rs 16.27 lakh, respectively.

Subsequently, the regulator decided to dispose of the adjudication proceedings initiated against them.
PTI
first published: Feb 12, 2021 03:11 pm

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