SEBI Issues Adjudication Order Against Parduman Kumar Jain for Manipulative Trades in Illiquid Stock Options at BSE

SEBI conducted a detailed investigation into the trading activities of Parduman Kumar Jain concerning illiquid stock options at BSE during April 2014 to September 2015. The adjudication proceedings revealed that Jain executed reversal trades involving significant price differences, which were non-genuine and pre-planned with counterparties.

These trades created artificial volumes in the options segment, impacting the integrity of price discovery on the exchange. The trades involved careful order placements, timing, and quantities, indicating collusion between the parties to manipulate trading prices. Such activities are violations of SEBI’s Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations.

SEBI’s order reinforces the regulator’s commitment to market transparency and investor protection by penalizing misleading trading practices that harm market fairness.

Key Highlights:

SEBI issued an adjudication order against Parduman Kumar Jain for manipulative trades.

Reversal trades with significant price differences created artificial trading volumes.

Trades identified as collusive, violating PFUTP Regulations at BSE.

Undermined price discovery mechanism of the illiquid stock options segment.

Investigation covered trading activities from April 2014 to September 2015.

SEBI strengthens enforcement to maintain market integrity and investor confidence.

Sources: SEBI official adjudication order, Fortune India, CaseMine