Description

SEBI adjudication order imposing penalty on Amritphal Mercantile Private Limited for executing 7 non-genuine reversal trades in BSE stock options segment, creating artificial volumes of 2,24,000 units during April 2014 to September 2015.

Summary

SEBI’s Adjudicating Officer issued Order No. Order/AK/GN/2025-26/32330 against Amritphal Mercantile Private Limited (PAN: AAHCA4645F) for alleged participation in large-scale non-genuine reversal trades in the illiquid stock options segment of BSE. The entity executed 7 non-genuine trades in 1 stock options contract, generating artificial volume of 2,24,000 units during the investigation period of April 1, 2014 to September 30, 2015.

Key Points

  • SEBI investigated reversal trades in BSE stock options segment for the period April 1, 2014 to September 30, 2015
  • Out of all trades executed in the stock options segment during the investigation period, 2,91,744 trades (81.40%) were allegedly non-genuine
  • Amritphal Mercantile Private Limited executed 7 non-genuine trades in 1 stock options contract, creating artificial volume of 2,24,000 units
  • The trades were alleged to be manipulative and deceptive, creating false or misleading appearance of trading activity
  • Show Cause Notice was originally issued on August 02, 2022 but returned undelivered
  • Original AO Mr. N Hariharan was appointed July 27, 2022; case was subsequently transferred to a new AO appointed April 04, 2025

Regulatory Changes

No new regulatory changes introduced. This is an enforcement order under existing provisions.

Compliance Requirements

  • Violations alleged under Regulations 3(a), (b), (c), (d), 4(1), and 4(2)(a) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (PFUTP Regulations)
  • Penalty proceedings initiated under Section 15HA of the SEBI Act, 1992
  • Proceedings conducted under Rule 5 of SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995

Important Dates

  • Investigation Period: April 1, 2014 to September 30, 2015
  • Show Cause Notice issued: August 02, 2022
  • Original AO appointed: July 27, 2022
  • New AO appointed: April 04, 2025
  • Order reference: Order/AK/GN/2025-26/32330

Impact Assessment

This order is part of SEBI’s broader enforcement sweep against entities that participated in illiquid stock options manipulation on BSE between 2014-2015. The direct market impact is minimal given the historical nature of the violations. However, it reinforces SEBI’s continued pursuit of market manipulation cases regardless of the time elapsed. Entities involved in similar non-genuine or reversal trades in derivatives segments remain at risk of adjudication proceedings and monetary penalties under Section 15HA of the SEBI Act.

Impact Justification

Enforcement action against a single entity for historical trades (2014-2015) in BSE illiquid stock options. Limited current market impact as the investigation period is long past. Part of a broader SEBI sweep against non-genuine options trading.