SEBI finds 81.40% of BSE stock option trades were non-genuine

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

Who it concerns: Rupee Services Private Limited (PAN: AAFCR0056B)

What SEBI found or ordered

• SEBI observed that 2,91,744 trades (81.40% of all BSE stock option trades) during April 2014 to September 2015 were allegedly non-genuine and created artificial volume.
• Rupee Services Private Limited was identified as one of the entities involved in executing these reversal trades.
• 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 two settlement schemes (2022 and 2024) but did not avail of either.
• The Noticee failed to respond to the Show Cause Notice or attend the hearing, 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 scale of the alleged manipulation was significant, involving 81.40% of all trades in the BSE stock options segment during the specified period.
• The proceedings were conducted ex-parte because the Noticee did not respond to multiple notices or settlement opportunities.
• The order references the SEBI Settlement Schemes of 2022 and 2024, which were offered to entities involved in similar illiquid stock option trades.