SEBI v. GPSK Capital Private Limited (reversal trades in illiquid stock options at BSE, settlement, 2022)

Settled

✓ Checked against the primary document on October 8, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, in a single reading of the order; an independent second reading of 60 SEBI records agreed on every field for 56, the four misses being penalty amounts; a later sample of 50 of the SEBI records added on 9 October agreed on every field for 46. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

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GPSK Capital settled SEBI's allegation that it took part in same-day reversal trades with the same counterparty in illiquid BSE stock options, without admitting or denying it. The February 2022 settlement order records a settlement amount of Rs 1,74,25,000.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

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Total relief

—

Alleged gain

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Penalty as published

17.4m INR

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars. This regulator states penalties in INR. The figure is recorded as published and is not converted, so it does not appear in the USD totals or medians used elsewhere on this site.

What is alleged to have happened

The settlement order of 9 February 2022 was signed by a SEBI adjudicating officer under the SEBI (Settlement Proceedings) Regulations, 2018. It concerns GPSK Capital Private Limited and belongs to the large SEBI enforcement programme on trading in illiquid stock options at BSE.

SEBI's investigation covered April 2014 to September 2015 and recorded that about 2,91,643 trades, 81.38 percent of all trades in the BSE stock options segment, were non-genuine reversal trades, creating about 826.21 crore units of artificial volume, 54.68 percent of segment volume. Against GPSK, the show-cause notice of 14 September 2021 alleged 7 instances in 2 contracts in which a position was taken and reversed with the same counterparty on the same day at a substantially different price, producing artificial volume of 9,34,000 units, in breach of Regulations 3 and 4(1) and 4(2)(a) of the PFUTP Regulations.

While the adjudication was pending, GPSK applied to settle without admitting or denying the findings of fact or conclusions of law. SEBI's internal committee formulated a settlement amount of Rs 1,74,25,000 on 24 November 2021, the high powered advisory committee recommended it on 29 December 2021, and the panel of whole-time members approved it on 13 January 2022. SEBI confirmed receipt of payment on 1 February 2022.

The order disposes of the adjudication proceedings begun by the notice and imposes no restraint. SEBI keeps the right to restore the proceedings if GPSK's representations prove untrue or it breaches its undertakings.

Because this is a settlement, the order makes no finding of violation, and the settlement amount is not a penalty. The record does not show GPSK's gain from the trades, the identity of its counterparties, or any criminal matter.

This library tags the matter as matched orders. The tagging is ours, not the regulator's.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the order.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Matched orders — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2022-02-09 SEBI settlement order

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEBI order
• Order (PDF)

The linked release is published by the issuing regulator under its own terms. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added October 8, 2026. submit a correction.