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

This order addresses SEBI's investigation into Prachi Tradevine Pvt Ltd for allegedly 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.

Prachi Tradevine Pvt Ltd (PAN: AAFCP7889L)

• 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.

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