SEBI finds 48.78% artificial volume in Kavita Didwania's BSE trades

The Adjudicating Officer proceeded ex-parte because the Noticee did not respond to notices or appear for hearings.

Who it concerns: Kavita Didwania (PAN: ABTPA8605K)

What SEBI found or ordered

• SEBI found that the Noticee executed 2 non-genuine reversal trades in the contract CESC15APR660.00CE on March 31, 2015.
• These trades resulted in an artificial volume of 2,00,000 units.
• The Noticee did not respond to the Show Cause Notice (SCN) or appear for hearings on May 16, 2023, or July 06, 2023.
• The Adjudicating Officer presumed the allegations were admitted due to the lack of response, citing SAT precedent.
• 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 specific trades involved a buy of 1,00,000 units at Rs 4 and a sell of 1,00,000 units at Rs 6 with the same counterparty within 3 seconds.
• The Noticee's artificial volume constituted 48.78% of the total market volume in that specific contract.
• The proceedings were initiated based on a broader investigation into 14,720 entities involved in non-genuine trades at BSE between 2014 and 2015.