SEBI finds 2,91,744 non-genuine trades in BSE stock options

The proceedings were disposed of without determining liability because the company has been struck off and no longer exists.

Who it concerns: Vanchhit Distributors Private Limited (formerly Exon Distributors Private Limited)

What SEBI found or ordered

• SEBI observed that 2,91,744 non-genuine trades created artificial volume in BSE stock options between April 1, 2014, and September 30, 2015.
• The company was alleged to have violated Regulations 3(a)-(d) and 4(1), 4(2)(a) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003.
• The Adjudicating Officer noted the company's status as 'Strike Off' on the Ministry of Corporate Affairs website.
• The adjudication proceedings were disposed of without going into the merits of the case because the company no longer exists.
• SEBI noted that if the company is revived or restored, proceedings may be initiated afresh.

Also in the document

• The order cites a 2018 ITAT judgment stating that an assessment order against a dissolved company is a nullity.
• The company was offered the SEBI Settlement Scheme, 2022, in the Show Cause Notice, but the final decision was based on the company's non-existence rather than a settlement.