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

It details the adjudication process and the presumption of liability due to the company's failure to respond to the show cause notice.

Who it concerns: Rose Securities Limited (PAN: AADCR1312E)

What SEBI found or ordered

• 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.

Also in the document

• The investigation period (2014-2015) concluded long before the public notice was issued in 2026, citing the absence of prescribed timelines for identifying non-genuine trades.
• The specific trade example cited involved a buy and sell with the same counterparty (Hotel Polo Towers Private Limited) within seconds, with a significant price difference (Rs 0.1 vs Rs 6 per unit).
• The order references a broader investigation where 14,720 entities were found to be involved in similar non-genuine trades on BSE.