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

This order addresses SEBI's investigation into Rupee Services Private Limited for executing non-genuine reversal trades in illiquid stock options on the BSE, which created artificial trading volume. SEBI examined whether these actions violated regulations prohibiting fraudulent and unfair trade practices.

Rupee Services Private Limited (PAN: AAFCR0056B)

• 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.

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