SEBI finds 7 fake trades in Ecospace Suppliers' stock options

This order addresses SEBI's findings that Ecospace Suppliers 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.

Ecospace Suppliers Private Limited (PAN: AACCE9872D)

• SEBI found that the Noticee executed 7 non-genuine trades in one stock option contract (JAIA15FEB20.00PEW1).
• These trades resulted in the creation of artificial volume of 22,40,000 units.
• The Noticee's non-genuine trades accounted for 63.64% of the total trades in that specific contract.
• The artificial volume generated by the Noticee represented 91.5% of the total market volume in that contract.
• 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 attend the hearing, leading SEBI to proceed ex-parte and presume the allegations were admitted.
• The order notes that the investigation covered the period from April 1, 2014, to September 30, 2015.

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