SEBI's Action Against Cross-Segment Manipulation
The Securities and Exchange Board of India (SEBI) has taken action against a sophisticated cross‑segment manipulation strategy involving stock futures and options. This strategy allegedly yielded gains of Rs 28.12 crore, which have been frozen pending further investigation.
Details of the Strategy
The scheme involved two linked entities—**Prrsaar Sampada Private Limited** and **Chaubara Eats Private Limited**—and four individuals: Ved Prakash Gupta, Priti Gupta, Saroj Gupta, and Gaurav Tomar. They have been barred from accessing the securities market until they deposit the alleged gains in fixed deposits.
The manipulation method consisted of placing large near‑the‑money options orders at prices both below and above the prevailing market level, leaving them unexecuted in the order book. The parties then alternated between net‑buying and net‑selling stock futures in short time windows, deliberately moving the underlying price to trigger the pre‑positioned options at advantageous levels.
Significance and Next Steps
SEBI’s intervention aims to safeguard market integrity by curbing practices that artificially influence prices and deceive participants. The regulator clarified that the Rs 28.12 crore figure reflects only the suspected gains identified in the sample examined so far; a wider probe is underway into related entities, coordinated trading, and possible cash‑market manipulation.
The barred parties have **21 days** to file responses and seek a hearing. The interim order does not preclude further proceedings, including penalties, after the investigation concludes.