SEBI finds 4 fake trades created 3,64,000 unit artificial volume

SEBI examined whether the entity executed non-genuine reversal trades that created artificial trading volume.

Who it concerns: Ambition Plaza LLP (formerly Ambition Plaza Private Limited)

What SEBI found or ordered

• SEBI alleged that Ambition Plaza LLP executed 4 non-genuine trades in 2 stock option contracts, resulting in an artificial volume of 3,64,000 units.
• SEBI found that these trades were part of a larger pattern where 2,91,744 trades (81.40% of all trades in the segment during the period) were non-genuine.
• The entity is charged with violating 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 Scheme, 2024.
• The Noticee argued that the proceedings were delayed and that the trades were legitimate business activities executed via a broker without knowledge of counterparties.

Also in the document

• The investigation period spans from April 1, 2014, to September 30, 2015.
• SEBI noted that the entity was originally Ambition Plaza Private Limited, which was converted to an LLP in March 2016, leading to the re-initiation of proceedings against the LLP.
• The Noticee cited significant delays in the regulatory process, arguing that the Show Cause Notice was issued 8 years after the investigation period ended.