SEBI finds 81.40% of BSE stock options trades non-genuine during 2014-2015

SEBI found that the company executed non-genuine reversal trades that created artificial trading volume.

Who it concerns: Amritphal Mercantile Private Limited (PAN: AAHCA4645F)

What SEBI found or ordered

• SEBI found that the Noticee executed 7 non-genuine trades in 1 stock options contract, resulting in an artificial volume of 2,24,000 units.
• The trades were alleged to be manipulative and deceptive, violating Regulations 3(a), (b), (c), (d), 4(1), and 4(2)(a) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003.
• The Noticee did not file a reply to the Show Cause Notice (SCN) or appear for hearings, leading SEBI to proceed ex-parte and presume the charges were admitted.
• The Noticee did not avail of the SEBI Settlement Scheme, 2022, or the ISO Settlement Scheme, 2024, despite multiple extensions and notifications.

Also in the document

• The case was decided ex-parte because the Noticee failed to respond to multiple service attempts, including newspaper publications and email, despite SEBI adhering to principles of natural justice.
• The alleged non-genuine trades were part of a larger pattern where 81.40% of all trades in the BSE stock options segment during the investigation period were found to be non-genuine.