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

This order addresses SEBI's findings that Emblem Tradelink Private Limited executed non-genuine reversal trades in illiquid stock options on the BSE, creating artificial trading volume. SEBI determined these actions violated regulations prohibiting fraudulent and unfair trade practices.

Emblem Tradelink Private Limited (PAN: AABCE9161A)

• 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.

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