SEBI finds 7 non-genuine trades creating 9,32,000 unit artificial volume

This order addresses alleged manipulative trading by S K Garments Private Limited in the stock options segment of the Bombay Stock Exchange (BSE) between April 2014 and September 2015. SEBI examined whether the company executed non-genuine reversal trades that created artificial volume, violating regulations against fraudulent and unfair trade practices.

S K Garments Private Limited (PAN: AALCS3830L)

• SEBI found that the Noticee executed 7 non-genuine trades in 3 stock option contracts, resulting in an artificial volume of 9,32,000 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 was offered the SEBI Settlement Scheme, 2022, and later the SEBI ISO Settlement Scheme, 2024, but did not avail either 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 notes that the Noticee was one of 14,720 entities identified by SEBI as involved in non-genuine trades in the BSE stock options segment during the investigation period.

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