SEBI freezes ₹28.12 crore in F&O cross-segment manipulation crackdown
Synopsis
SEBI has frozen ₹28.12 crore in alleged manipulation gains and barred two companies and four individuals from derivatives markets, after surveillance alerts flagged an unusual pattern of large options profits paired with futures losses on the same stocks. The case centres on a cross-segment strategy targeting smaller, less-liquid NSE-listed stocks — and the trail reportedly continued through a related entity even after the primary broker was warned.
Key Takeaways
SEBI issued an ex parte interim order on 16 September 2026 freezing ₹28.12 crore in alleged manipulation gains.
Two entities — Prrsaar Sampada Private Limited and Chaubara Eats Private Limited — and four individuals are barred from equity derivatives trading.
The alleged strategy involved placing large unexecuted near-the-money options orders while alternating futures positions on the same underlying stocks.
Target stocks were reportedly among the bottom 100 by market capitalisation of 211 NSE-listed derivatives-eligible stocks.
Prrsaar stopped the activity in its proprietary account after NSE communications in February–March 2026 , but a similar pattern was subsequently found in the accounts of related entity Chaubara Eats .
All six parties remain barred from the securities market until the stipulated deposit is made; the investigation is ongoing.
The Securities and Exchange Board of India (SEBI) on Wednesday, 16 September 2026, issued an ex parte interim order freezing alleged manipulation gains of ₹28.12 crore and barring two entities and four individuals from derivatives trading, after uncovering a suspected cross-segment manipulation strategy involving stock futures and options. The order marks one of the regulator's sharpest interventions in the equity derivatives space this year.
Who Is Named and What They Must Do
SEBI Whole Time Member Kamlesh Chandra Varshney directed Prrsaar Sampada Private Limited and Chaubara Eats Private Limited, along with individuals Ved Prakash Gupta, Priti Gupta, Saroj Gupta, and Gaurav Tomar, to deposit the combined sum of ₹28.12 crore in fixed deposits pending further investigation.
Until the deposit is made, all six parties are barred from accessing the securities market entirely. Once the deposit condition is met, they may resume trading in the cash segment, but will continue to remain prohibited from participating in equity derivatives trading.
How the Alleged Manipulation Worked
Surveillance alerts raised by the National Stock Exchange (NSE) and SEBI flagged an unusual pattern: Prrsaar — a SEBI-registered stockbroker and depository participant — was recording abnormally large profits in stock options while simultaneously incurring losses in stock futures on the same underlying stocks.
According to SEBI's interim order, the alleged strategy began with the placement of large near-the-money options orders at prices both below and above the prevailing market price, which were reportedly 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, using the options and futures positions in combination across market segments.
SEBI is examining whether this pattern was designed to influence prices or market conditions in the underlying securities in order to generate gains through the derivatives positions.
Target Stocks and Regulatory Timeline
The alleged scheme reportedly focused on relatively smaller and less-liquid stocks — particularly those among the bottom 100 by market capitalisation of approximately 211 NSE-listed stocks eligible for derivatives trading. Smaller stocks with thinner order books are generally more susceptible to price influence from large orders.
Prrsaar reportedly discontinued the activity in its proprietary account following communications from the NSE in February and March 2026. A subsequent regulatory examination found what SEBI described as a similar trading pattern in the accounts of Chaubara Eats, identified as a related entity, suggesting the activity may have continued through an affiliated vehicle.
Broader Significance for Market Regulation
This case is notable for the cross-segment dimension: regulators allege that positions in the futures segment were used in concert with options orders to manufacture an outcome that would not have been possible in a single segment alone. This is the Nth such cross-segment manipulation probe in recent years, as SEBI has progressively expanded its surveillance architecture to detect inter-segment anomalies.
The interim order is ex parte, meaning it was passed without a hearing from the named parties — a measure typically reserved for situations where the regulator believes delay could cause further market harm or asset dissipation. The investigation is ongoing, and the final order will follow after the parties are given an opportunity to respond.
Point of View
But the more telling detail is that the activity allegedly migrated to a related entity after the primary broker was warned — raising questions about whether early NSE alerts were acted upon swiftly enough. With derivatives volumes at record highs and retail participation surging in options, the surveillance-to-enforcement lag remains a systemic risk. A robust real-time cross-segment surveillance framework, not just post-facto orders, is what the market needs.
NationPress
16 Sept 2026
Frequently Asked Questions
What did SEBI uncover in its latest derivatives manipulation case?
SEBI uncovered an alleged cross-segment manipulation strategy where entities reportedly generated large profits in stock options while simultaneously incurring losses in stock futures on the same underlying stocks. The regulator froze ₹28.12 crore in alleged gains and barred two firms and four individuals from derivatives trading.
Who are the entities and individuals named in the SEBI order?
The named entities are Prrsaar Sampada Private Limited and Chaubara Eats Private Limited. The four individuals named are Ved Prakash Gupta, Priti Gupta, Saroj Gupta, and Gaurav Tomar. All six have been directed to deposit ₹28.12 crore in fixed deposits and are barred from equity derivatives trading pending further investigation.
How did the alleged manipulation scheme operate?
According to SEBI's interim order, the scheme allegedly involved placing large near-the-money options orders — left unexecuted in the order book — while alternating between net buying and net selling of stock futures at different intervals during the trading day. The regulator is examining whether this cross-segment strategy was designed to influence prices and generate derivatives gains.
Why were smaller stocks targeted in this alleged scheme?
SEBI's order notes that the entities allegedly focused on stocks among the bottom 100 by market capitalisation of the approximately 211 NSE-listed stocks eligible for derivatives trading. Smaller, less-liquid stocks are generally more susceptible to price influence from large orders, potentially making the alleged strategy more effective.
What happens next in this case?
The six parties remain barred from the securities market until they deposit ₹28.12 crore in fixed deposits. After the deposit, they may trade in the cash segment but will stay prohibited from equity derivatives. Since the order is ex parte, the parties will be given an opportunity to respond before a final order is passed; the investigation is ongoing.
