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

This order addresses SEBI's investigation into Gayatri Devi Choudhary for allegedly executing non-genuine reversal trades in illiquid stock options on the BSE, which created artificial trading volume. SEBI found that these actions violated regulations prohibiting fraudulent and unfair trade practices.

Gayatri Devi Choudhary (PAN: ACCPC0370P)

• 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.

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