SEBI finds 14,720 entities involved in non-genuine BSE stock options trades

This order addresses alleged manipulative trading by Dipen D Chandruva in illiquid stock options on the BSE, which SEBI found created artificial volume. It details the procedural history, including the Noticee's failure to respond to Show Cause Notices or avail settlement schemes, leading to an ex-parte adjudication.

Dipen D Chandruva (PAN: ADZPC5855H)

• SEBI observed that 2,91,744 trades (81.40% of BSE stock options trades) during April 2014–September 2015 were non-genuine and created artificial volume.
• The Noticee is alleged to have executed 5 non-genuine trades in 2 stock option contracts, resulting in an artificial volume of 2,74,000 units.
• SEBI alleged violations of Regulations 3(a), (b), (c), (d), 4(1), and 4(2)(a) of the PFUTP Regulations, 2003.
• The Noticee did not avail the SEBI Settlement Scheme 2022 or the SEBI ISO Settlement Scheme 2024.
• The Noticee failed to respond to the Show Cause Notice (SCN) and hearing notices served via email and public notice.
• The Adjudicating Officer proceeded ex-parte, presuming the allegations were admitted due to the lack of response, citing SAT precedent.

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