SEBI Cracks Down On Alleged Futures-Options Manipulation, Freezes Rs 28.12 Crore

(MENAFN- IANS) Mumbai, Sep 16 (IANS) The Securities and Exchange Board of India (SEBI) on Wednesday said that it has uncovered an alleged cross-segment market manipulation strategy involving stock futures and options, and has frozen gains worth Rs 28.12 crore while restricting two entities and four individuals from participating in derivatives trading.

In an ex parte interim order, SEBI Whole Time Member Kamlesh Chandra Varshney directed Prrsaar Sampada Private Limited and Chaubara Eats Private Limited, along with Ved Prakash Gupta, Priti Gupta, Saroj Gupta and Gaurav Tomar, to deposit a combined Rs 28.12 crore in fixed deposits pending further investigation into the matter.

The regulator has barred the six parties from accessing the securities market until the stipulated amount is deposited. Following the deposit, they may participate in the cash segment, but will continue to remain prohibited from trading in equity derivatives.

The matter came under regulatory scrutiny after surveillance alerts were raised by the National Stock Exchange (NSE) and SEBI over unusually large profits generated by Prrsaar in stock options while the entity simultaneously incurred losses in stock futures involving the same underlying stocks.

Prrsaar, which is a SEBI-registered stockbroker and depository participant, discontinued the activity in its proprietary account following communications from the NSE in February and March 2026. Subsequent regulatory examination found what SEBI described as a similar trading pattern in the accounts of Chaubara Eats, a related entity.

According to SEBI's interim order, the entities allegedly focused on relatively smaller and less-liquid stocks, particularly those among the bottom 100 by market capitalisation of around 211 NSE-listed stocks eligible for derivatives trading.

The regulator alleged that the trading strategy began with the placement of large near-the-money options orders at prices both below and above the prevailing market price. These orders were allegedly left unexecuted in the order book. The entities then allegedly alternated between net buying and net selling of stock futures during different time intervals of the trading day.

SEBI's findings indicate that the options orders and futures positions were used in combination across market segments. The regulator is examining whether the trading pattern was designed to influence prices or market conditions in the underlying securities and generate gains through the derivatives positions.

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