SEBI finds 81.40% of BSE stock option trades were non-genuine
This order addresses SEBI's investigation into Cube Trafin Private Limited for allegedly executing non-genuine reversal trades in illiquid stock options on the BSE, which SEBI found created artificial trading volume.
Cube Trafin Private Limited (PAN: AABCC0768M)
- SEBI observed that 2,91,744 trades (81.40% of all BSE stock option trades) between April 1, 2014, and September 30, 2015, were allegedly non-genuine and created artificial volume.
- SEBI alleged that Cube Trafin Private Limited executed 5 non-genuine trades in 2 stock option contracts, resulting in an artificial volume of 10,16,500 units.
- SEBI initiated adjudication proceedings for 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 Noticee did not avail of the SEBI ISO Settlement Schemes of 2022 or 2024.
- The Noticee filed a reply on July 02, 2026, arguing that the trades were bona fide investment activities executed through a registered broker without collusion or prior understanding with counterparties.
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Document details
| Official title | Adjudication Order in respect of Cube Trafin Private Limited in the matter of Illiquid Stock Options at BSE |
| Source body | Securities & Exchange Board of India (SEBI) — enforcement orders |
| Reference number | Order/MS/SM/2026-27/32668 |
| Status | None (order) |
| Year | 2026 |
| Closing date | — |
| Documents | 1 |