Description

SEBI adjudication order against Mrs. Alkaben Matadar for alleged violations related to non-genuine reversal trades in illiquid stock options on BSE during April 2014 to September 2015.

Summary

SEBI issued Adjudication Order No. Order/JS/VC/2025-26/31957 against Mrs. Alkaben Matadar (PAN: AGAPM3957C) for alleged violations of PFUTP Regulations related to non-genuine trading activities in Illiquid Stock Options on BSE. During the investigation period (April 1, 2014 to September 30, 2015), SEBI observed large-scale reversal of trades creating artificial volumes. Mrs. Matadar was identified as one of 14,720 entities executing such reversal trades. The adjudication proceedings were initiated under Section 15-I of SEBI Act, 1992 for alleged violations of regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations.

Key Points

  • Investigation revealed 2,91,744 trades (81.41% of all trades) in BSE stock options segment involved reversal of buy and sell positions during the investigation period
  • Reversal trades involved entities reversing their buy or sell position in a contract with subsequent sell or buy position with the same counterparty
  • Such trades were deemed non-genuine, lacking basic trading rationale and creating false or misleading appearance of trading
  • 14,720 entities were found to have executed non-genuine trades in BSE’s stock options segment
  • Mrs. Alkaben Matadar was identified as one of the entities executing such manipulative reversal trades
  • Show Cause Notice dated March 07, 2022 was issued to the Noticee
  • Adjudicating Officer was appointed on April 03, 2025 under Section 15-I of SEBI Act

Regulatory Changes

No new regulatory changes introduced. This is an enforcement action under existing SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003.

Compliance Requirements

Not applicable - this is an individual adjudication order, not a circular introducing new compliance requirements.

Important Dates

  • Investigation Period: April 1, 2014 to September 30, 2015
  • Show Cause Notice: March 07, 2022
  • Adjudicating Officer Appointment: April 03, 2025
  • Order Date: January 2026 (document incomplete)

Impact Assessment

Limited market impact as this is a retrospective enforcement action against an individual entity for historical violations during 2014-2015. The order serves as a deterrent against manipulative trading practices in illiquid stock options. The case is part of a broader investigation involving 14,720 entities, indicating systemic issues in BSE’s stock options segment during that period. However, the individual impact on current market operations is minimal.

Impact Justification

Individual adjudication order affecting one entity for historical violations (2014-2015); no systemic regulatory changes or market-wide impact