SEBI finds 4 fake trades creating 5,13,250 units artificial volume

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

Who it concerns: Parmeswar Commercial Private Limited (PAN: AADCP8039L)

What SEBI found or ordered

• SEBI found the Noticee executed 4 non-genuine trades in 2 stock option contracts.
• These trades resulted in the creation of artificial volume of 5,13,250 units.
• 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 cites the creation of a false or misleading appearance of trading as the core manipulative act.

Also in the document

• The investigation period covered April 1, 2014, to September 30, 2015.
• SEBI noted that the Noticee's artificial volume contributed between 52.62% and 78.19% of the total market volume in the specific contracts involved.
• The order references a broader investigation where 14,720 entities were found to have executed non-genuine trades in the BSE stock options segment during the same period.