Description

SEBI adjudication order against Ambaashree Infratech Pvt. Ltd. for executing non-genuine reversal trades in illiquid stock options on BSE during April 2014 to September 2015, creating artificial volumes in violation of PFUTP Regulations.

Summary

SEBI issued an adjudication order against Ambaashree Infratech Pvt. Ltd. (PAN: AAKCA4144N) for engaging in non-genuine reversal trades in illiquid stock options on BSE during April 1, 2014 to September 30, 2015. The entity was one of 14,720 entities found executing reversal trades that created false or misleading appearance of trading and artificial volumes. These trades involved reversing buy or sell positions in contracts with the same counterparty, lacking basic trading rationale. SEBI alleged violations of regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations, 2003.

Key Points

  • Investigation Period: April 1, 2014 to September 30, 2015
  • Total reversal trades in BSE stock options: 2,91,643 trades (81.38% of all trades)
  • 14,720 entities involved in non-genuine trades during investigation period
  • Ambaashree Infratech Pvt. Ltd. executed reversal trades creating artificial volumes
  • Reversal trades involved entities reversing buy/sell positions with same counterparty
  • Trades alleged to be deceptive, manipulative and lacking trading rationale
  • Show Cause Notice issued on September 15, 2021
  • Adjudication proceedings initiated under Section 15-I of SEBI Act, 1992
  • New Adjudicating Officer appointed on April 04, 2025

Regulatory Changes

No new regulatory changes introduced. This order enforces existing provisions under SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003.

Compliance Requirements

  • Entities must not engage in reversal trades that create artificial volumes
  • Trading activities must have genuine economic rationale
  • Entities must not create false or misleading appearance of trading
  • Market participants must comply with PFUTP Regulations provisions prohibiting manipulative and deceptive practices

Important Dates

  • Investigation Period: April 1, 2014 to September 30, 2015
  • Show Cause Notice issued: September 15, 2021
  • Adjudicating Officer appointed: April 04, 2025
  • Order publication date: January 22, 2026

Impact Assessment

Limited market impact as this is an individual adjudication order addressing historical violations from 2014-2015. The entity is one among 14,720 entities involved in similar activities during the investigation period. The order serves as enforcement action against past manipulative practices in illiquid stock options segment on BSE. No immediate operational changes required for broader market participants. The incomplete document indicates penalty determination is pending.

Impact Justification

Individual entity adjudication order for historical violations (2014-2015) with limited market-wide implications. One of 14,720 entities involved in similar activities. No systemic regulatory changes or market impact.