SEBI alleges 2.9 lakh fake BSE options trades created artificial volume

Who it concerns: Puja Rungta (PAN: ACYPR2483A)

What SEBI found or ordered

• SEBI observed that 2,91,744 trades (81.40% of all BSE stock options trades) between April 1, 2014, and September 30, 2015, were allegedly non-genuine and created artificial volume.
• SEBI alleged that Puja Rungta executed 4 reversal trades in 2 contracts, resulting in an artificial volume of 1,392,000 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 Noticee denied executing the trades, claiming they were unauthorized and that no corresponding transactions appeared in her bank statements or income tax returns.
• The Noticee filed a SCORES complaint against the broker, Guiness Securities Limited, alleging unauthorized trade execution.

Also in the document

• The investigation period covers a significant portion of BSE's stock options trading volume (81.40%) during the specified period.
• The alleged trade value was approximately 8 to 9 Crores, which the Noticee claims is not reflected in her financial records.
• The broker involved, Guiness Securities Limited, was declared a 'defaulter' by BSE in a public notice dated May 16, 2019.