SEBI finds 14,720 entities involved in BSE stock option fraud

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

Who it concerns: Emblem Tradelink Private Limited (PAN: AABCE9161A)

What SEBI found or ordered

• SEBI found that the Noticee executed 4 non-genuine reversal trades in the stock option contract 'DABU15APR270.00PE'.
• These trades resulted in the creation of artificial volume of 2,76,000 units.
• The trades were executed with counterparties Ashok Kumar Baid (HUF) and R Narayan Steel Industries on March 23, 2015.
• SEBI found violations of 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 non-genuine trades constituted 14.29% of total trades in that specific contract and 100% of the volume generated by the Noticee in 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 option segment during the broader investigation.
• The Show Cause Notice was initially issued in August 2022 but could not be served; it was finally served via public notice in March 2026.
• The order cites the Supreme Court judgment in SEBI Vs Bhavesh Pabari regarding the exercise of power within a reasonable time when no specific limitation period is prescribed.