SEBI finds 96,000 artificial units from 2 reversal trades in Ellenbarrie Tea Company case

SEBI examined whether these actions violated regulations prohibiting fraudulent and unfair trade practices.

Who it concerns: The Ellenbarrie Tea Company Limited (PAN: AAACE5769M)

What SEBI found or ordered

• SEBI alleged the Noticee executed 2 non-genuine reversal trades in 1 stock option contract, resulting in an artificial volume of 96,000 units.
• The trades were alleged to violate 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 investigation period covered April 1, 2014, to September 30, 2015.
• The Noticee did not avail of the SEBI ISO Settlement Schemes of 2022 or 2024.
• The Noticee failed to respond to the Show Cause Notice served via public notice on March 20, 2026, despite being given 14 days to reply.

Also in the document

• SEBI noted that the broader investigation into BSE stock options revealed 14,720 entities involved in executing non-genuine trades during the same period.
• The Noticee argued that the trades were executed in an anonymous order matching system and that SEBI initiated proceedings six years after the trades, citing limitation periods.