Case Details

  • Entity Involved: The Ellenbarrie Tea Company Limited (PAN: AAACE5769M)
  • Order Number: Order/AK/DS/2026-27/32434
  • Order Date: June 05, 2026
  • Investigation Period: April 1, 2014 to September 30, 2015
  • Financial Impact: Penalty of ₹5,00,000 (Rupees Five Lakhs only) imposed

Persons Involved

  • Adjudicating Officer: Amit Kapoor (current), initially Ms. Sudha Rani R. Thirukonda appointed on September 20, 2021
  • Counterparty: Yochana Vyapaar Private Limited (trade counterparty in the non-genuine transactions)

Violations and Allegations

  • The Noticee executed 2 non-genuine reversal trades in 1 stock options contract (ADPW15APR36.00CE)
  • Violations of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003:
  • Regulations 3(a): Buying, selling or otherwise dealing in securities in a fraudulent manner
  • Regulations 3(b): Using manipulative or deceptive device or contrivance
  • Regulations 3(c): Employing device, scheme or artifice to defraud
  • Regulations 3(d): Engaging in act, practice which operates as fraud or deceit
  • Regulation 4(1): Indulging in fraudulent or unfair trade practice
  • Regulation 4(2)(a): Creating false or misleading appearance of trading
  • Specific trade details:
  • On April 30, 2015 at 13:57:14 hrs: Buy trade of 48,000 units at ₹5.5 per unit with Yochana Vyapaar Private Limited
  • On same day at 13:58:38 hrs: Sell trade of 48,000 units at ₹6.9 per unit with same counterparty
  • The trades resulted in artificial volume of 96,000 units
  • Noticee's non-genuine trades represented 12.5% of total trades in the contract
  • Artificial volume generated by Noticee was 100% of its total volume in the contract and 6.67% of total market volume in the contract

Penalties, Settlement Terms & Rulings

  • Monetary penalty: ₹5,00,000 under Section 15HA of SEBI Act, 1992
  • Penalty payable within 45 days of order receipt
  • Failure to pay may lead to recovery proceedings under Section 28A of SEBI Act, including attachment and sale of properties
  • The penalty amount represents the minimum prescribed under Section 15HA (not less than five lakh rupees)

Actions, Compliance and Future Obligations

  • Noticee must remit penalty amount through SEBI's online payment portal
  • No specific corrective actions or compliance measures ordered beyond penalty payment
  • Noticee did not avail of SEBI ISO Settlement Schemes offered in 2022 and 2024

Final Ruling and Enforcement

  • Violations of PFUTP Regulations established based on:
  • Reversal trades with same counterparty within short time frame (1 minute 24 seconds)
  • Significant price difference (₹5.5 buy vs ₹6.9 sell) indicating pre-determination
  • Application of preponderance of probabilities test from Supreme Court judgments (SEBI v Kishore R Ajmera, SEBI v Rakhi Trading Private Limited)
  • Prior meeting of minds inferred from trade precision and counterparty matching
  • Noticee's defenses rejected:
  • Anonymous trading system argument
  • Lack of BSE objection during trading
  • Time lapse (6 years) since trades executed
  • Request for investigation report and counterparty details
  • Claim that trades didn't affect other investors
  • Order served through public notice in three newspapers (The Statesman, Sanmarg, Duranta Barta) after failed direct service attempts
  • Noticee failed to respond to final hearing opportunity provided in October 2025