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

It specifically adjudicates the case against Jitendra Kumar Nahta HUF for alleged violations of regulations prohibiting fraudulent and unfair trade practices.

Who it concerns: Jitendra Kumar Nahta HUF (PAN: AAEHJ2046M)

What SEBI found or ordered

• 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.

Also in the document

• The alleged manipulation involved a significant portion of the market, with SEBI finding that 81.40% of all stock option trades at BSE during the investigation period were allegedly non-genuine.
• The case underwent multiple transfers of the Adjudicating Officer, with the current officer appointed on June 01, 2026.
• The Noticee argued that the trades were accidental, incidental to jobbing activities, and lacked the intention required to constitute fraud under the PFUTP Regulations.