SEBI Slaps ₹5 Lakh Penalty on Adhunik Ventures for Executing Manipulative Reversal Trades in Illiquid Options

SEBI Slaps ₹5 Lakh Penalty on Adhunik Ventures for Executing Manipulative Reversal Trades in Illiquid Options​

The Securities and Exchange Board of India (SEBI) has levied a penalty of ₹ 5,00,000/- on Adhunik Ventures Private Limited. The penalty was imposed following an adjudication order concerning the company's alleged manipulative trading activities in the illiquid stock options segment of the Bombay Stock Exchange (BSE).

The order, dated April 20, 2026, found the entity guilty of violating multiple provisions of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003. The regulatory action centers on the execution of non-genuine reversal trades during the period spanning April 1, 2014, to September 30, 2015.

Background of Manipulative Trading Allegations​

SEBI initiated the investigation after observing large-scale reversals of trades in the stock options segment of the BSE. The regulator noted that such activity was observed to create artificial volume, thereby distorting the genuine market activity.

During the investigation period (IP), SEBI analyzed trade data and alleged that a significant portion of transactions were non-genuine. The Adjudicating Officer found that Adhunik Ventures Private Limited was one of the entities involved in executing these alleged reversal trades.

The core allegation was that these trades were manipulative and deceptive in nature, creating a false appearance of trading volume. Consequently, SEBI initiated formal adjudication proceedings against the company for alleged violations of key rules designed to maintain market integrity.

SEBI's Key Findings on Non-Genuine Trades​

The Adjudicating Officer examined the transaction records, focusing on the notion of 'reversal trades.' These are defined as buy or sell positions that are reversed with subsequent trades involving the same counterparty on the same day.

The investigation highlighted that Adhunik Ventures Private Limited executed specific reversal trades using the same counterparty, RICKY CREDIT COMPANY PVT. LTD. These trades were notable for their rapid succession and wide variation in pricing.

The Adjudicating Officer concluded that the trades lacked a discernible commercial basis. The precision in order placement, the consistency of the counterparty, and the immediate reversal demonstrated a clear indication of a "prior meeting of minds."

This conclusion established that the trades were non-genuine and were executed with the deliberate intent to generate artificial volume, thereby distorting the trading mechanism in the illiquid options segment.

Failure to Avail Settlement Schemes​

During the course of the proceedings, the Adjudicating Officer noted that the Noticee failed to participate or avail itself of SEBI's structured settlement programs.

The order detailed two such schemes: the SEBI Settlement Scheme, 2022 (operational from August 22, 2022, to January 21, 2023), and the ISO Settlement Scheme, 2024 (operational from March 11, 2024, to May 10, 2024).

The Noticee did not utilize either facility, leading the adjudication proceedings to resume against the company.

Penalty Imposed for Market Manipulation​

Following a detailed consideration of the facts, legal precedents, and the material evidence, the Adjudicating Officer confirmed the establishment of violations. The findings confirmed that the trading behavior of Adhunik Ventures Private Limited was not normal.

The Noticee was found to have violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003.

Considering the seriousness of the violations, which were deemed detrimental to the integrity of the securities market, the Adjudicating Officer imposed a total penalty of ₹ 5,00,000/-.

The penalty amount was stipulated to be remitted within 45 days of the order's receipt. Failure to comply may lead to SEBI initiating consequential actions, including recovery proceedings under section 28A of the SEBI Act, 1992.