SEBI finds 4 non-genuine trades in BHRT15APR400.00CE stock option contract

SEBI found the company violated regulations prohibiting fraudulent and unfair trade practices.

Who it concerns: Fastino Dealers Private Limited (PAN: AABCF4252F)

What SEBI found or ordered

• SEBI found that Fastino Dealers Private Limited executed 4 non-genuine reversal trades in the stock option contract 'BHRT15APR400.00CE' on March 31, 2015.
• These trades resulted in the creation of artificial volume of 1,00,000 units.
• The company was found to have violated Regulations 3(a), (b), (c), (d), 4(1), and 4(2)(a) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003.
• The proceedings were conducted ex-parte as the company did not respond to the Show Cause Notice or attend hearings despite multiple service attempts.
• SEBI presumed the allegations were admitted due to the lack of response, citing precedent from the Securities Appellate Tribunal.

Also in the document

• The investigation period covered April 1, 2014, to September 30, 2015.
• The specific trades involved squaring up positions with the same counterparties (Deepak Kumar Rajgaria (HUF) and Topmost Commercial Private Limited) within seconds.
• The company's non-genuine trades accounted for 22.22% of the total trades in that specific contract and 10.11% of the total market volume for that contract.