The Securities and Exchange Board of India (SEBI) has issued an ex-parte interim order against Prrsaar Sampada Private Limited, Chaubara Eats Private Limited and four of their directors in a case involving alleged cross-segment price manipulation in the equity derivatives market.
According to the order dated September 16, 2026, SEBI’s preliminary examination identified approximately ₹28.12 crore in alleged wrongful gains from selected trading instances between October 2025 and June 2026.
The regulator has directed that bank accounts be impounded to the extent of the alleged wrongful gains and that the specified amount be placed in fixed deposits carrying a lien in SEBI’s favour. All six noticees have also been restrained from accessing the securities market, subject to the conditions contained in the order.
The directions are interim in nature. SEBI has stated that its observations are prima facie and based on the material presently available. The noticees may file replies or objections within 21 days of receiving the order and may request a personal hearing.
Entities Covered by the Interim Order
The proceedings involve the following six noticees:
- Prrsaar Sampada Private Limited
- Ved Prakash Gupta
- Priti Gupta
- Chaubara Eats Private Limited
- Saroj Gupta
- Gaurav Tomar
Prrsaar is registered with SEBI as a stockbroker, depository participant and research analyst. The regulator’s analysis initially focused on unusual activity in Prrsaar’s proprietary trading account.
SEBI observed that Prrsaar allegedly generated unusually high profits in stock options while recording losses in corresponding stock futures.
After the National Stock Exchange sought clarification from Prrsaar through letters dated February 6 and March 16, 2026, the activity reportedly stopped in Prrsaar’s proprietary account. However, SEBI claimed that a similar pattern subsequently appeared in the account of Chaubara, an entity connected to Prrsaar through family relationships, common addresses and previous directorships.
The order also noted the use of the same trading member and common dealers for a substantial proportion of the trades.
What Is Cross-Segment Price Manipulation?
Futures and options derive their value from an underlying security. Because they provide related economic exposure, prices across these segments normally remain closely connected.
Cross-segment manipulation may occur when a trader allegedly creates an artificial price movement in one market segment to profit from a larger position held in another segment.
In the pattern described by SEBI, the entities allegedly held significant positions in stock options. They then placed aggressive orders in the corresponding futures contracts at prices substantially above or below the prevailing market price.
These futures trades allegedly moved the futures price in a selected direction and created a temporary pricing difference between futures and related options. Other market participants, believing that the movement represented genuine demand or supply, reportedly entered the market and provided immediate execution for the entities’ options trades.
The regulator’s preliminary view is that the profit generated from options was greater than the loss incurred while influencing the futures price.
How the Alleged Strategy Worked
SEBI examined the order and trade books for selected trading days. According to the interim order, the alleged pattern generally involved the following stages:
- Large options positions were created in the chosen underlying security.
- Aggressive futures orders were placed away from the prevailing last traded price.
- The futures trades allegedly influenced the price and affected related options valuations.
- Other participants responded to the apparent pricing opportunity.
- The entities executed opposite options trades and allegedly earned profits from the induced movement.
The order states that the futures positions used to influence prices were substantially smaller than the corresponding options exposure. This difference allegedly allowed the entities to accept a controlled loss in futures while earning a larger profit in options.
SEBI distinguished this conduct from legitimate arbitrage or hedging. Genuine arbitrage attempts to benefit from existing market inefficiencies, whereas the alleged conduct involved deliberately creating or widening the pricing distortion.
Trading Activity Shifted Between Related Entities
One of the case’s most significant features is the alleged shift in trading activity from Prrsaar to Chaubara.
SEBI divided the examination period into two parts. Prrsaar’s activity was examined primarily from October 2025 to February 2026, while Chaubara’s activity was considered from March to June 2026.
The regulator observed that the gross traded value in stock derivatives moved from Prrsaar to Chaubara after NSE contacted Prrsaar. It further stated that similar alleged activity continued through Chaubara and may have occurred as recently as August 2026, although the latest instance analysed in the interim order was from June.
SEBI relied upon family connections between the directors, common residential and contact details, shared trading infrastructure, previous directorships and the use of common dealers while examining the relationship between the companies.
These circumstances contributed to the regulator’s preliminary conclusion that the companies were connected and that their trading activities required coordinated examination.
₹28.12 Crore in Alleged Wrongful Gains
Because the trading pattern involved extensive order-book and trade-book analysis, SEBI initially examined 23 high-profit instances: 13 associated with Prrsaar and 10 associated with Chaubara.
The order calculated the following alleged wrongful gains:
- Prrsaar Sampada Private Limited: ₹22,06,44,706
- Chaubara Eats Private Limited: ₹6,05,63,836
- Total alleged wrongful gains: ₹28,12,08,542
The selected transactions involved securities such as BDL, Godrej Properties, 360 ONE, KFin Technologies, Uno Minda, Prestige Estates, Mphasis, Waaree Energies, Torrent Power, Marico, Swiggy, Jio Financial Services, Hindustan Zinc and Lodha.
SEBI clarified that the calculation covered only the selected 23 instances. It did not include potential gains from other futures and options transactions, alleged coordinated or synchronised trading, or possible manipulation through the underlying cash-market securities.
Consequently, the final amount could change after the detailed investigation.
Major Directions Issued by SEBI
SEBI directed that ₹22.06 crore be impounded jointly and severally from Prrsaar and its two directors, Ved Prakash Gupta and Priti Gupta.
Another ₹6.05 crore is to be impounded jointly and severally from Chaubara and its directors, Saroj Gupta and Gaurav Tomar.
The principal interim directions include:
- Opening fixed-deposit accounts for the impounded amounts with a lien in SEBI’s favour
- Restraining all six noticees from accessing the securities market
- Restricting debits from their bank and demat accounts without SEBI’s permission
- Preventing the transfer or redemption of securities and mutual-fund units
- Prohibiting the disposal or alienation of assets without prior approval
- Requiring a complete inventory of assets and financial accounts within 15 days
- Directing the noticees to cooperate with SEBI’s continuing investigation
Prrsaar’s client-fund bank accounts are excluded because the restriction applies to its proprietary operations. The noticees may close existing exchange-traded derivative positions within three months or upon contract expiry, whichever occurs earlier.
Once the required amounts are deposited, certain restrictions may cease. The noticees may then be permitted to trade in the cash segment but would remain prohibited from trading in equity futures and options.
Why Directors Were Included
SEBI observed that companies function through the individuals who direct and control their operations.
The interim order referred to the role of the directors in the alleged trading strategy and invoked the principles governing liability for company contraventions. It recorded a preliminary view that the directors played central roles in formulating or implementing the suspected scheme.
Accordingly, the directors were made jointly and severally responsible for the impounding amounts attributed to their respective companies.
This is not a final determination of liability. The directors and companies retain the opportunity to contest the observations and present their explanations and supporting evidence.
The Larger Takeaway
The order demonstrates that regulatory surveillance now extends beyond analysing trades within a single segment.
SEBI and stock exchanges can compare futures, options and cash-market activity; identify connected accounts; examine dealer-level execution; and reconstruct millisecond-level order patterns. A loss in one segment may attract scrutiny when it appears to have generated a substantially larger profit in another.
For brokers, proprietary traders and businesses participating in derivatives, documented trading rationale and effective surveillance controls are essential. Strategies involving related accounts or simultaneous positions across connected instruments should be supported by a legitimate commercial purpose and a verifiable decision-making trail.
Shunyatax Global Insights
A SEBI interim order can immediately affect bank accounts, demat holdings, proprietary trading, assets and business continuity—even before the investigation reaches a final conclusion.
The first response should include preserving order logs, dealer instructions, strategy notes, communication records and funding trails. Trading activity across related accounts must be reconciled so that the organisation can explain the commercial rationale, execution sequence and beneficial ownership behind every material position.
If you or your business is facing problems involving a SEBI investigation, market-access restriction, bank-account impounding, derivatives trading or regulatory-documentation gaps, Shunyatax Global can provide professional guidance to help you move forward with clarity and confidence.
Contact Shunyatax Global
Phone: +91 94615 14198
Email: office@shunyatax.in
Website: www.shunyatax.in
Disclaimer: This article is based on SEBI’s ex-parte interim order dated September 16, 2026. The observations and alleged wrongful gains are prima facie and remain subject to further investigation, objections, hearings and final proceedings. This content is intended for general information and does not constitute legal, tax, investment or financial advice.