SEBI penalizes Plastika Industries for 8 non-genuine BSE option trades

It imposes a monetary penalty for violating regulations prohibiting fraudulent and unfair trade practices.

Who it concerns: Plastika Industries (PAN: AAAFP4737H)

What SEBI found or ordered

• SEBI found that Plastika Industries executed 8 non-genuine trades in 2 stock option contracts.
• These trades resulted in the creation of artificial volume of 5,00,000 units.
• The violations occurred during the period from April 1, 2014, to September 30, 2015.
• SEBI found violations of Regulations 3(a), (b), (c), (d), 4(1), and 4(2)(a) of the PFUTP Regulations, 2003.
• The proceedings were conducted ex-parte as the Noticee did not respond to the Show Cause Notice or public notice.
• A monetary penalty is imposed under Section 15HA of the SEBI Act, 1992.

Also in the document

• The investigation revealed that 14,720 entities were involved in executing non-genuine trades in BSE’s stock option segment during the investigation period.
• The alleged non-genuine trades by Plastika Industries constituted 33.33% to 100% of the total trades in the specific contracts involved.
• The artificial volume generated by the Noticee contributed 31.45% to 100% of the total market volume in those specific contracts.