SEBI finds 291744 illiquid stock option trades allegedly artificial

SEBI initiated adjudication proceedings for alleged violations of the PFUTP Regulations, 2003.

Who it concerns: Sweta Agarwal (PAN: BKEPA0806R)

What SEBI found or ordered

• SEBI observed that 2,91,744 trades (81.40% of BSE stock options trades) between April 1, 2014, and September 30, 2015, were allegedly non-genuine and created artificial volume.
• Sweta Agarwal is alleged to have executed 3 non-genuine trades in 1 stock options contract, resulting in an artificial volume of 600,000 units.
• SEBI alleged violations of Regulations 3(a), (b), (c), (d), 4(1), and 4(2)(a) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003.
• The Noticee was offered the SEBI Settlement Scheme, 2022, and the ISO Settlement Scheme, 2024, but did not avail either.
• The Noticee submitted a reply on November 11, 2025, arguing that the Show Cause Notice was issued after an inordinate delay and requesting cross-examination of counterparties.

Also in the document

• The investigation covered a period from April 1, 2014, to September 30, 2015.
• The Noticee claimed to be a housewife with no regular source of income and stated she was unable to pay any penalty.
• The Noticee argued that the proceedings were time-barred, citing a 3-year limitation period, although the SCN was issued in 2021 for trades in 2014-2015.