SEBI finds 7 fake trades in Ecospace Suppliers' stock options

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

Who it concerns: Ecospace Suppliers Private Limited (PAN: AACCE9872D)

What SEBI found or ordered

• 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.

Also in the document

• SEBI noted that the specific trades were 'squared up' with the same counterparties within minutes (e.g., a buy at 13:10:18 followed by a sell at 13:25:16).
• The order references a broader investigation where 14,720 entities were found to be involved in non-genuine trades in the BSE stock options segment during the same period.
• The Show Cause Notice was served via public notice in newspapers (The Statesman, Sanmarg, Duranta Barta) after other service methods failed.