Description

SEBI adjudication order against Diganta Agencies Pvt Ltd for executing 20 non-genuine reversal trades in illiquid stock options on BSE during April 2014 to September 2015, creating artificial volume of 7,66,000 units.

Summary

SEBI has issued an adjudication order (Order/AK/RK/2025-26/32332) against Diganta Agencies Pvt Ltd (PAN: AAECD1732F) for alleged manipulation in the illiquid stock options segment of BSE. The entity is found to have executed 20 non-genuine reversal trades across 3 stock options contracts during the investigation period of April 1, 2014 to September 30, 2015, generating artificial volume of 7,66,000 units.

Key Points

  • Diganta Agencies Pvt Ltd executed 20 non-genuine trades in 3 stock options contracts on BSE during April 2014 – September 2015
  • The trades resulted in artificial volume of 7,66,000 units
  • SEBI’s broader investigation found 2,91,744 trades (81.40% of all trades in BSE stock options during the period) were allegedly non-genuine
  • Violations alleged under PFUTP Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a)
  • Show Cause Notice (SCN) was issued on August 08, 2022 (Ref: EAD-8/AS/VS/36438/2022)
  • Adjudicating Officer was initially Smt. Asha Shetty; case was subsequently transferred and a new AO was appointed on April 03, 2025

Regulatory Changes

No new regulatory changes introduced. This order is an enforcement action under existing provisions of Section 15-I of the SEBI Act, 1992 read with Rule 5 of SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995, and Section 15HA of the SEBI Act.

Compliance Requirements

  • The noticee (Diganta Agencies Pvt Ltd) is required to comply with the penalty imposed under Section 15HA of the SEBI Act
  • Market participants engaged in options trading must ensure all trades are genuine and do not create artificial volumes or false/misleading appearances of trading activity
  • Entities must not engage in reversal trades or other manipulative/deceptive trading practices as prohibited under PFUTP Regulations

Important Dates

  • Investigation Period: April 01, 2014 – September 30, 2015
  • Show Cause Notice Issued: August 08, 2022
  • New AO Appointed: April 03, 2025
  • Order Number: Order/AK/RK/2025-26/32332

Impact Assessment

This order has limited direct market impact as it pertains to historical trading violations by a single entity. However, it reflects SEBI’s continued enforcement of its large-scale investigation into illiquid stock options manipulation on BSE, where over 81% of all trades during the investigation period were found to be non-genuine. The order serves as a deterrent against artificial volume creation and manipulative reversal trading strategies in the options segment. Market participants should note SEBI’s sustained scrutiny of illiquid derivatives trading.

Impact Justification

Routine adjudication order penalising a single entity for historical trading violations during 2014-2015; part of SEBI's broader crackdown on illiquid stock options manipulation on BSE but with limited current market impact.