SEBI finds 2,91,744 non-genuine BSE trades by Dinbandhu Construction

This order addresses allegations that Dinbandhu Construction Private Limited engaged in manipulative trading of illiquid stock options on the BSE to create artificial volume. The proceedings were disposed of because the company no longer existed as a legal entity at the time the case was initiated.

Dinbandhu Construction Private Limited (PAN: AACCD8172B)

• SEBI observed that 2,91,744 trades (81.40% of total) in BSE stock options between April 2014 and September 2015 were non-genuine and created artificial volume.
• The Noticee was alleged to have executed 8 non-genuine reversal trades in 2 contracts, resulting in an artificial volume of 14,55,000 units.
• SEBI 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) Regulations, 2003.
• The Adjudicating Officer found that the Noticee was converted to a Limited Liability Partnership (LLP) and dissolved as a company on April 24, 2019.
• The adjudication proceedings were disposed of because the Noticee was not in existence as a legal entity when the Show Cause Notice was issued on August 04, 2022.

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