SEBI finds 96,000 artificial units from 2 reversal trades in BSE stock options

SEBI found that these actions violated regulations prohibiting fraudulent and unfair trade practices.

Who it concerns: Gayatri Devi Choudhary (PAN: ACCPC0370P)

What SEBI found or ordered

• SEBI found that the Noticee executed 2 non-genuine reversal trades in the contract 'DISH15APR60.00CEW1' on March 24, 2015.
• These trades resulted in the creation of artificial volume of 96,000 units.
• The trades were executed with the counterparty Multiwyn Commercial Private Limited, with a buy at 14:54:37 and a sell at 15:06:48 on the same day.
• SEBI determined that the Noticee violated 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 subsequent intimations, leading SEBI to proceed ex-parte and presume the allegations were admitted.
• The order notes that the Noticee's alleged non-genuine trades constituted 7.69% of total trades in that specific contract and 5.83% of the total market volume for that contract.

Also in the document

• The investigation period covered April 1, 2014, to September 30, 2015.
• SEBI noted that 14,720 entities were involved in executing non-genuine trades in the BSE stock options segment during the investigation period.
• The Noticee was one of many entities identified in a large-scale reversal of trades that led to artificial volume creation at BSE.