Adjudication Order in respect of Gothi HUF Shavji Raja in the matter of trading in Illiquid Stock Options at BSE

Gothi HUF Shavji Raja has been found to have violated the provisions of Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations, 2003. The penalty imposed on him is Rs 5,00,000/- (Rupees Five Lakhs only).

The adjudication order also notes that the Noticee executed non-genuine trades resulting in the creation of artificial volume, thereby violating the provisions of Regulation 3(a), (b), (c) & (d) & Regulation 4(1) and 4(2)(a) of the PFUTP Regulations, 2003.

The factors considered for determining the quantum of penalty include the repetitive nature of the default.

Gothi HUF Shavji Raja has been instructed to remit/pay the penalty amount within 45 days of receipt of this order. Failure to do so may result in consequential actions including but not limited to recovery proceedings under section 28A of the SEBI Act, 1992 for realization of the said amount of penalty along with interest thereon.