SEBI Slaps Rs5 Lakh Penalty on Manju Devi for Trading in Illiquid Stock Options
Moneylife Digital Team 11 June 2025
Market regulator Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs5 lakh on Manju Devi found guilty of engaging in illiquid stock options segment of the Bombay Stock Exchange (BSE). 
 
In an order, Amit Kapoor, adjudicating officer (AO) of SEBI, articulated that "The trading behaviour of Ms Devi confirmed that such trades were not normal, indicating that the trades executed by Ms Devi were not genuine trades and being non-genuine, created an appearance of artificial trading volumes in respective contracts in violation of Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of PFUTP Regulations, 2003."
 
SEBI's investigation into these trading activities spanned from April 2014 to September 2015. SEBI discovered that a staggering 2,91,744 trades, accounting for about 81.40% of all trades executed in the stock options segment, were potentially non-genuine. This alarming statistic underscores how these activities distorted the market by creating artificial volumes.
 
SEBI also mentioned that such trades were alleged to be non-genuine and created a false or misleading appearance of trading in terms of artificial volumes in stock options; therefore, they were suspected to be manipulative and deceptive.
 
Ms Devi executed trades characterised by reversal trades which, typically, involve buying and selling the same securities almost simultaneously to create an illusion of heightened trading activity, the market regulator says. "Such practices not only mislead other market participants but also undermine the fairness and transparency of the trading environment."
 
Specifically, SEBI says Ms Devi was involved in executing 2 non-genuine trades entered by Nitya Jain in 1 contract led to creation of artificial trading volumes which had the effect of distorting the market mechanism in the Illiquid Stock Options segment of BSE.
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