Description

SEBI adjudication order against Gita Devi Agarwal for alleged manipulation through reversal trades in illiquid stock options on BSE during April 2014 to September 2015. Proceedings abated following notice of the noticee's death.

Summary

SEBI initiated adjudication proceedings against Gita Devi Agarwal (PAN: ADBPA7633H) for alleged participation in reversal trades in illiquid stock options on BSE during the investigation period of April 1, 2014 to September 30, 2015. SEBI’s investigation found that 2,91,744 trades — comprising 81.40% of all stock options trades on BSE during the period — were non-genuine, creating artificial volumes. The noticee was alleged to have violated Regulations 3(a), (b), (c), (d), 4(1), and 4(2)(a) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003. However, proceedings were subsequently informed of the noticee’s death via communication from her husband dated March 02, 2026, along with a copy of her death certificate.

Key Points

  • SEBI investigated large-scale reversal trades in BSE’s stock options segment for the period April 1, 2014 to September 30, 2015.
  • 81.40% of all stock options trades on BSE during the investigation period (2,91,744 trades) were found to be non-genuine.
  • Gita Devi Agarwal was identified as one of the entities involved in reversal trades creating artificial volumes.
  • A Show Cause Notice was issued on August 04, 2022 under Rule 4(1) of SEBI Adjudication Rules.
  • The undersigned Adjudicating Officer was appointed vide Order dated April 03, 2025.
  • On March 02, 2026, the noticee’s husband informed SEBI of her death and submitted her death certificate.

Regulatory Changes

No new regulatory changes introduced. This is an enforcement action under existing provisions of the SEBI Act, 1992 and PFUTP Regulations, 2003.

Compliance Requirements

No ongoing compliance requirements for market participants arising from this order. The case pertains to an individual noticee whose proceedings have been abated due to death.

Important Dates

  • Investigation Period: April 1, 2014 – September 30, 2015
  • Show Cause Notice Issued: August 04, 2022
  • Adjudicating Officer Appointed: April 03, 2025
  • Death Notification Received: March 02, 2026

Impact Assessment

This order has minimal broader market impact as it concerns an individual enforcement action that has been abated following the noticee’s death. It is part of SEBI’s larger ongoing enforcement effort against entities involved in illiquid stock options manipulation on BSE, which has resulted in numerous similar proceedings across many individuals.

Impact Justification

Individual enforcement action now abated due to noticee's death; no broader market or regulatory impact.