2,91,744 BSE stock option trades found non-genuine, SEBI orders adjudication

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

Who it concerns: Prachi Tradevine Pvt Ltd (PAN: AAFCP7889L)

What SEBI found or ordered

• SEBI observed that Prachi Tradevine Pvt Ltd executed 8 non-genuine trades in 4 stock option contracts, resulting in an artificial volume of 1,67,000 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 company was offered two settlement schemes (SEBI Settlement Scheme 2022 and ISO Settlement Scheme 2024) but did not avail either.
• The company 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, with potential penalties under Section 15HA.

Also in the document

• The specific trades by this entity were part of a larger pattern where 2,91,744 trades (81.40% of all BSE stock option trades during the period) were found to be non-genuine.
• The period of investigation covered April 01, 2014, to September 30, 2015.
• The company was served via public notice in three newspapers (The Statesman, Sanmarg, Duranta Barta) because direct service at its address failed.