Adjudication Order in respect of Ujala Capital Markets Pvt Ltd in the matter of trading in Illiquid Stock Options at BSE

The Securities and Exchange Board of India (SEBI) has issued an Adjudication Order against Ujala Capital Markets Pvt Ltd for violating provisions of the Prohibition of Fraudulent Trading in Securities (PFUTP) Regulations, 2003. The Noticee has been found guilty of executing non-genuine trades in illiquid stock options contracts at BSE, resulting in artificial volume generation and causing unfair advantage to itself.

The penalty imposed on the Noticee is ₹ 5 lakhs, which is commensurate with the lapse/omission on its part. The Noticee is required to remit/pay the said amount of penalty within 45 days of receipt of this order. Failure to pay the penalty will result in consequential actions, including recovery proceedings under section 28A of the SEBI Act, 1992.

The Adjudication Order also highlights the repetitive nature of the default, as the Noticee has entered into 46 non-genuine trades. The factors considered while determining the quantum of penalty include the amount of disproportionate gain or unfair advantage made by the Noticee and the losses suffered by investors due to such violations.

The SEBI has issued a copy of this order to the Noticee and also to itself.