SEBI finds LCI India executed 12 non-genuine reversal trades in 5 stock options

It details the adjudication proceedings and the presumption of guilt due to the company's failure to respond to notices or appear for a hearing.

Who it concerns: LCI India Limited (PAN: AAACL5741Q)

What SEBI found or ordered

• SEBI found that LCI India Limited executed 12 non-genuine trades in 5 stock option contracts.
• These trades resulted in the creation of artificial volume totaling 4,57,000 units.
• The trades were identified as 'reversal trades' where the company bought and sold with the same counterparty on the same day with significant price differences.
• SEBI alleged violations of Regulations 3(a), (b), (c), (d), 4(1), and 4(2)(a) of the PFUTP Regulations, 2003.
• The Adjudicating Officer proceeded ex-parte, presuming the allegations were admitted because LCI India Limited did not reply to the Show Cause Notice or appear for the hearing on May 18, 2026.

Also in the document

• The investigation period covered April 1, 2014, to September 30, 2015.
• SEBI noted that in the specific contracts involved, the artificial volume generated by LCI India Limited contributed 70% to 100% of the total market volume.
• The order references a broader investigation where 14,720 entities were found to be involved in similar non-genuine trades on BSE.