Description

SEBI adjudication order against Adhunik Ventures Private Limited for executing 4 non-genuine reversal trades in BSE illiquid stock options during April 2014 to September 2015, creating artificial volume of 206,500 units.

Summary

SEBI has issued an adjudication order against Adhunik Ventures Private Limited (PAN: AAHCA7165L) for alleged manipulation in the illiquid stock options segment of BSE. The entity executed 4 non-genuine reversal trades in 1 stock options contract during the investigation period of April 1, 2014 to September 30, 2015, generating artificial volume of 206,500 units. This order is part of a broader SEBI investigation that found 2,91,744 trades (81.40% of all trades in BSE’s stock options segment during the period) to be allegedly non-genuine.

Key Points

  • Adhunik Ventures Private Limited executed 4 non-genuine trades in 1 stock options contract on BSE
  • The trades created artificial volume of 206,500 units
  • Investigation period covered April 1, 2014 to September 30, 2015
  • SEBI’s broader investigation found 81.40% of BSE stock options trades during this period were allegedly non-genuine
  • The noticee allegedly violated PFUTP Regulations 3(a), (b), (c), (d), 4(1), and 4(2)(a)
  • Adjudication Order No. Order/AK/GN/2026-27/32368 issued under Section 15-I of the SEBI Act, 1992
  • Mr. Suresh B. Menon was initially appointed as AO; the case was subsequently transferred to the undersigned AO (appointed April 4, 2025)

Regulatory Changes

No new regulatory changes introduced. This order enforces existing provisions of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (PFUTP Regulations) against manipulation through reversal trades.

Compliance Requirements

  • Market participants must not engage in reversal trades or any trading activity that creates artificial volume or a false or misleading appearance of trading
  • Entities found in violation of PFUTP Regulations 3(a), (b), (c), (d), 4(1), and 4(2)(a) are liable for penalty under Section 15HA of the SEBI Act, 1992
  • Noticee was required to respond to the Show Cause Notice (SCN) and attend hearings as part of the adjudication process

Important Dates

  • April 1, 2014 – September 30, 2015: Investigation period for illiquid stock options trading on BSE
  • July 27, 2021: Initial appointment of Adjudicating Officer (Mr. Suresh B. Menon)
  • September 22, 2021: Show Cause Notice issued to Adhunik Ventures Private Limited
  • September 24, 2021: SCN delivered via SPAD and email
  • August 3, 2022: 1st Post SCN Intimation issued
  • April 4, 2025: New Adjudicating Officer appointed following case transfer

Impact Assessment

This order has limited direct market impact as it concerns historical trading activity (2014–2015) by a single private limited company. The penalty serves as a deterrent against market manipulation through reversal trades in illiquid derivatives. It is part of SEBI’s ongoing enforcement action against multiple entities involved in the large-scale manipulation of BSE’s illiquid stock options segment, reinforcing SEBI’s commitment to market integrity and genuine price discovery.

Impact Justification

Routine adjudication order against a single private limited company for a small number of non-genuine trades (4 trades) in a historical investigation period (2014-2015). No listed stocks directly impacted; limited market-wide relevance.