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

SEBI found that the HUF ceased to exist as a legal entity before the proceedings were concluded, rendering the case infructuous.

Who it concerns: Kedar Mal Poddar HUF (PAN: AACHK5074Q)

What SEBI found or ordered

• SEBI observed that the HUF executed 4 reversal trades creating an artificial volume of 486,304 units in the BSE stock options segment between April 1, 2014, and September 30, 2015.
• SEBI alleged these trades were non-genuine and violated Regulations 3(a), (b), (c), (d), 4(1), and 4(2)(a) of the PFUTP Regulations, 2003.
• The HUF was dissolved on September 15, 2017, and the Karta died on January 10, 2020.
• The Adjudicating Officer disposed of the proceedings because the Noticee no longer exists as a legal entity.

Also in the document

• The case was part of a larger investigation where SEBI found that 81.40% of all trades in the BSE stock options segment during the investigation period were non-genuine.
• The HUF was offered the SEBI Settlement Scheme 2022 but did not avail of it, instead submitting a reply regarding its dissolution.