SEBI orders crystallization of penalty against Excel Technovation in illiquid stock options case

Who it concerns: Excel Technovation Pvt Ltd (PAN: AAACE3703B)

What SEBI found or ordered

• SEBI found that the company executed 46 non-genuine trades across 23 stock option contracts.
• These trades resulted in the creation of artificial volume totaling 12,92,000 units.
• The company did not submit a reply to the Show Cause Notice on merits, leading SEBI to presume the allegations were admitted based on SAT precedent.
• SEBI noted that the company is currently in liquidation under NCLT Jaipur, but this does not extinguish the regulatory proceedings.
• The order cites violations of Regulations 3(a), (b), (c), (d), 4(1), and 4(2)(a) of the PFUTP Regulations, 2003.

Also in the document

• The investigation period (2014-2015) involved 14,720 entities in total, with Excel Technovation being one of them.
• The company's liquidator informed SEBI that the timeline for filing claims had elapsed, but SEBI determined it must proceed to crystallize the penalty amount to assert its claim in the liquidation proceedings.
• The order notes that in some contracts, the company's non-genuine trades constituted 100% of the total trades in that specific contract.