Description

SEBI adjudication order against Salween Securities Private Limited (formerly Suzlon Securities 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 Adjudicating Officer issued Order No. Order/AK/DS/2025-26/32126 against Salween Securities Private Limited (previously known as Suzlon Securities Private Limited, PAN: AANCS5746H) for its alleged participation in large-scale reversal trading in the illiquid stock options segment of BSE during April 1, 2014 to September 30, 2015. The investigation revealed that 2,91,744 trades — comprising 81.40% of all BSE stock options trades during the investigation period — were allegedly non-genuine, resulting in artificial volume creation.

Key Points

  • SEBI investigated large-scale reversal of trades in BSE’s stock options segment covering the period April 1, 2014 to September 30, 2015
  • A total of 2,91,744 trades (81.40% of all BSE stock options trades during the period) were found to be allegedly non-genuine
  • Salween Securities Private Limited executed 2 non-genuine trades in 1 stock options contract, creating artificial volume of 40,000 units
  • The company was previously known as Suzlon Securities Private Limited
  • Adjudication proceedings were initiated for alleged violation of SEBI PFUTP Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a)
  • A Show Cause Notice was issued on August 11, 2022 (Ref: SEBI/HO/SEBI/SEBI/P/OW/20220000041286/1)
  • The original Adjudicating Officer was Mr. Benoy Melshiyar (appointed September 20, 2021); the undersigned AO was appointed April 03, 2025

Regulatory Changes

No new regulatory changes introduced. This is an enforcement action under existing provisions of:

  • Section 15-I and Section 15HA of the SEBI Act, 1992
  • Rule 5 of SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995
  • Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003

Compliance Requirements

  • The Noticee (Salween Securities Private Limited) is required to respond to the Show Cause Notice and participate in the adjudication inquiry
  • Market participants must refrain from executing reversal trades or any trades designed to create artificial volumes in stock options or any other segment
  • Entities must ensure all trades are genuine and do not create false or misleading appearance of trading activity

Important Dates

  • Investigation Period: April 1, 2014 – September 30, 2015
  • Original AO Appointment: September 20, 2021
  • Show Cause Notice Issued: August 11, 2022
  • Current AO Appointment: April 03, 2025
  • Order Date: February 18, 2026

Impact Assessment

This order has limited broader market impact as it pertains to historical violations by a single private limited company involving only 2 non-genuine trades. The significance lies in SEBI’s continued enforcement action against participants in the BSE illiquid stock options manipulation scheme, which was a systemic issue affecting 81.40% of all trades in that segment. The order reinforces SEBI’s long-term commitment to pursuing fraudulent trading practices even years after the violation period.

Impact Justification

Entity-specific adjudication order for historical violations (2014-2015) involving only 2 non-genuine trades by a single private limited company; no broader market or systemic impact.