SEBI finds 5 fake trades by Nitin Jain created 14.52 lakh artificial units

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

Who it concerns: Nitin Jain (PAN: ABGPJ1359J)

What SEBI found or ordered

• SEBI found that Nitin Jain executed 5 non-genuine trades in 2 stock option contracts, resulting in an artificial volume of 14,52,000 units.
• SEBI alleged 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 avail of the SEBI Settlement Scheme 2022 or the ISO Settlement Scheme 2024 despite being offered the opportunity.
• The Noticee failed to respond to the Show Cause Notice or attend hearings, leading SEBI to proceed ex-parte and presume the allegations were admitted.
• The order is an adjudication proceeding under Section 15-I of the SEBI Act, 1992.

Also in the document

• The investigation period covered April 1, 2014, to September 30, 2015.
• SEBI noted that 14,720 entities were involved in similar non-genuine trades during the investigation period.
• The case was heard by an Adjudicating Officer appointed by SEBI, with the current officer appointed via an order dated April 3, 2025.