SEBI finds 81.40% of BSE stock options trades non-genuine in 2014-2015 case

SEBI examined whether these trades created artificial volume and violated regulations against fraudulent and unfair trade practices.

Who it concerns: Ram Asava HUF (PAN: AARHR3709J)

What SEBI found or ordered

• SEBI found that the Noticee executed 4 non-genuine trades in 2 stock options contracts, resulting in an artificial volume of 1,50,000 units.
• SEBI alleged violations of Regulations 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.
• The proceedings were conducted ex-parte because the Noticee did not reply to the Show Cause Notice or appear for hearings despite multiple opportunities.
• The order notes that the Noticee did not avail of the SEBI ISO Settlement Schemes of 2022 or 2024.

Also in the document

• The investigation period covered a large scale of activity, with SEBI observing that 81.40% of all trades in the BSE stock options segment during the period were allegedly non-genuine.
• The case involves a significant delay between the investigation period (2014-2015) and the adjudication order (2026), with SEBI citing Supreme Court precedents to justify the timeline.