SEBI finds 81.40% of BSE stock options trades non-genuine

The Adjudicating Officer proceeded ex-parte because the Noticee failed to respond to notices or appear for hearings.

Who it concerns: Fatmabibi Yusufbhai Rangwala (PAN: ASUPR4609Q)

What SEBI found or ordered

• SEBI found that the Noticee executed 2 non-genuine trades in 1 stock options contract, resulting in an artificial volume of 1,40,000 units.
• The trades were alleged to violate 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 matter was decided ex-parte under Rule 4(7) of the SEBI Adjudication Rules because the Noticee did not file a reply to the Show Cause Notice or avail the opportunity for a personal hearing despite multiple notices.
• The order notes that the Noticee did not avail the SEBI ISO Settlement Schemes of 2022 or 2024.

Also in the document

• The investigation covered a broader period from April 1, 2014, to September 30, 2015, during which SEBI observed that 81.40% of all trades in the BSE stock options segment were allegedly non-genuine.
• The total number of entities involved in the broader investigation was 14,720, but this specific order concerns only the individual Noticee.
• The Adjudicating Officer relied on Supreme Court and SAT precedents to presume that the charges were admitted due to the Noticee's non-appearance.