SEBI finds 81.40% of BSE stock option trades allegedly non-genuine

This order addresses SEBI's investigation into alleged manipulation of the stock options segment at the Bombay Stock Exchange (BSE) through large-scale reversal trades that created artificial volume. It specifically adjudicates the case against Jitendra Kumar Nahta HUF for alleged violations of regulations prohibiting fraudulent and unfair trade practices.

Jitendra Kumar Nahta HUF (PAN: AAEHJ2046M)

• SEBI observed that 2,91,744 trades (81.40% of all stock option trades at BSE) between April 1, 2014, and September 30, 2015, were allegedly non-genuine and created artificial volume.
• The Show Cause Notice alleged that Jitendra Kumar Nahta HUF executed 6 non-genuine trades in 3 stock option contracts, resulting in an artificial volume of 58,000 units.
• SEBI initiated 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.
• A personal hearing was held on June 30, 2026, where the Noticee's Authorized Representative requested one week for additional written submissions.

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