2025 (8) TMI 726

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....Ms. Meera Swarup, Technical Member The present appeal has been filed against order dated October 5, 2023 (hereinafter referred to as 'Impugned Order') passed by Adjudicating Officer (hereinafter referred to as 'AO') of Securities and Exchange Board of India (hereinafter referred to as 'SEBI') imposing a penalty of Rs. 5,00,000/- under Section 15HA of SEBI Act, 1992 for violation of Regulation 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 (hereinafter referred to as 'PFUTP Regulations') for trading in illiquid stock options at Bombay Stock Exchange (herein after referred to as 'BSE') in August 2015. 2. The facts leading to filing ....

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....), which was further extended till January 21, 2023; and March 11, 2024 to May 10, 2024 (3rd Settlement Scheme), respectively. 4. Adjudication proceedings were initiated against those entities, which did not avail the opportunity of one-time settlement provided by the aforesaid Settlement Scheme framed by SEBI, the Appellant being one of such entities which did not avail the benefit of the said Scheme. Thus, the impugned order dated October 5, 2023 was passed against the Appellant. 5. We have heard Shri Divyanshu Goyal, learned Advocate for the Appellant and Shri Manish Chhangani, learned Advocate for the Respondent. 6. The counsel for the Appellant contended that the impugned order has been passed without serving the Show Cause No....

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....tories for serving the same on the Appellant. Paper publication was also done. The Appellant neither filed any reply to SCN nor appeared in person and therefore, ex parte order had to be passed. Further, the Appellant preferred not to avail the benefit of Settlement Scheme, which provided a one-time opportunity of settlement in the illiquid stock option matters. 9. Having heard the learned counsels and on examination of material on record, we note that the impugned order has been passed ex parte. Para-11 of the impugned order notes that the SCN was not delivered to the Appellant. Para-15 of the Impugned Order acknowledges that the order has been issued ex parte. Therefore, we are satisfied that the Appellant was not served with the SCN n....