SEBI finds 45 fake trades in 12 stock options, creating 22,08,000 units of artificial volume

It details the adjudication process and the specific violations of SEBI regulations regarding fraudulent and unfair trade practices.

Who it concerns: Ranika Investments Pvt Ltd (PAN: AAACR5548K)

What SEBI found or ordered

• SEBI found that the Noticee executed 45 non-genuine trades in 12 stock option contracts.
• These trades resulted in the creation of artificial volume totaling 22,08,000 units.
• The alleged violations include 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 respond to the Show Cause Notice or attend the hearing, leading SEBI to presume the allegations were admitted.
• The order notes that the Noticee's trades constituted 33.33% to 100% of total trades in the specific contracts involved.

Also in the document

• The investigation period covered April 1, 2014, to September 30, 2015.
• SEBI noted that 14,720 entities were involved in similar non-genuine trades in the BSE stock option segment during this period.
• The adjudication was conducted ex-parte because the Noticee failed to provide a response or appear for the hearing despite being granted the opportunity.