Description

SEBI imposes penalty on Agomoni Commercial Private Limited for executing non-genuine reversal trades in illiquid stock options at BSE during April 2014 to September 2015, creating artificial trading volumes.

Summary

SEBI’s Adjudication Order (Order/AK/GN/2025-26/32000) against Agomoni Commercial Private Limited (PAN: AAHCA2663H) for violations of PFUTP Regulations, 2003. The entity executed 4 non-genuine reversal trades in 2 stock options contracts at BSE during April 1, 2014 to September 30, 2015, resulting in artificial volume of 3,82,000 units. The investigation found that 2,91,744 trades (81.40% of all stock options trades at BSE during the period) were non-genuine, creating false appearance of trading activity.

Key Points

  • Agomoni Commercial Private Limited executed 4 non-genuine trades in 2 stock options contracts on BSE
  • Artificial volume created: 3,82,000 units
  • Investigation period: April 1, 2014 to September 30, 2015
  • Total non-genuine trades at BSE during period: 2,91,744 trades (81.40% of all stock options trades)
  • Alleged violations: Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations, 2003
  • Show Cause Notice issued: January 27, 2022
  • Adjudication Officer: Mr. Suresh B Menon (initial), transferred to new AO on April 04, 2025

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

  • Entities trading in stock options must ensure all trades are genuine and not create artificial volumes
  • Reversal trades that create false or misleading appearance of trading are prohibited
  • Trading practices must not be manipulative or deceptive in nature
  • Market participants must comply with PFUTP Regulations to avoid penalties under Section 15HA of SEBI Act, 1992

Important Dates

  • Investigation Period: April 1, 2014 to September 30, 2015
  • AO Appointment (Initial): July 27, 2021
  • Show Cause Notice Issued: January 27, 2022
  • SCN Dispatched: February 11, 2022
  • First Post SCN Intimation: August 10, 2022 (dispatched August 12, 2022)
  • AO Transfer: April 04, 2025
  • Order Date: January 28, 2026

Impact Assessment

Market Impact: Medium - This action is part of SEBI’s broader cleanup of non-genuine trading in illiquid stock options at BSE. While specific to one entity with relatively small volume (3.82 lakh units), it is part of a larger investigation covering 2.91 lakh trades representing 81.40% of all stock options trades during the investigation period.

Operational Impact: High for the Noticee - Agomoni Commercial Private Limited faces penalties under Section 15HA of SEBI Act, 1992 and potential restrictions on market participation.

Precedent Value: This order reinforces SEBI’s zero-tolerance approach to manipulation through reversal trades and artificial volume creation in derivatives segments, serving as deterrent for similar practices.

Impact Justification

Enforcement action against non-genuine trading practices in stock options. Specific to one entity but demonstrates SEBI's continued scrutiny of manipulative trading activities creating artificial volumes.