SEBI finds Rose Securities executed 12 non-genuine trades in 3 stock options

This order addresses SEBI's findings that Rose Securities Limited executed non-genuine reversal trades in illiquid stock options on the BSE, creating artificial trading volume. It details the adjudication process and the presumption of liability due to the company's failure to respond to the show cause notice.

Rose Securities Limited (PAN: AADCR1312E)

• SEBI found that Rose Securities Limited executed 12 non-genuine trades in 3 stock option contracts between April 1, 2014, and September 30, 2015.
• These trades resulted in the creation of artificial volume totaling 16,64,000 units.
• The trades were deemed manipulative and deceptive under Regulations 3(a), (b), (c), (d), 4(1), and 4(2)(a) of the PFUTP Regulations, 2003.
• The Show Cause Notice was served via public notice on March 20, 2026, after multiple failed delivery attempts.
• No response was received from the Noticee, leading the Adjudicating Officer to proceed ex-parte and presume the allegations were admitted.
• The order notes that the Noticee's artificial volume contributed 24.25% to 31.38% of the total market volume in the specific contracts involved.

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