The Securities Appellate Tribunal (SAT) has allowed Chaubara Eats and Prrsaar Sampada limited access to their frozen assets, conditioned on a ₹10 crore deposit. The firms remain under investigation by SEBI for alleged cross-segment market manipulation totaling ₹28.12 crore in wrongful gains. This ruling provides the companies with temporary operational relief while the regulatory probe continues.
The Securities Appellate Tribunal (SAT) has provided an interim reprieve to Chaubara Eats Private Limited and Prrsaar Sampada Private Limited, both of whom are currently facing a major investigation by the Securities and Exchange Board of India (SEBI). The tribunal has permitted these firms to access certain bank accounts and liquidate specific securities, provided they deposit ₹10 crore into a special account marked with a lien in favor of the market regulator.
This decision follows SEBI’s ex-parte interim order issued on September 16, 2026. In that order, the regulator accused both entities of engaging in sophisticated cross-segment market manipulation between October 2025 and June 2026. SEBI alleged that the firms employed a strategy often referred to in market circles as 'Desi Jane Street,' which involves distorting prices in one market segment—such as stock futures—to generate illicit profits in another, like stock options.
The Scale of Alleged Manipulation
SEBI’s investigation had initially identified approximately ₹28.12 crore in wrongful gains attributed to these trading activities. According to the regulatory findings, ₹22.06 crore was linked to Prrsaar Sampada, while ₹6.06 crore was attributed to Chaubara Eats. As part of its crackdown, the regulator had previously frozen the bank and demat accounts of both firms and barred them from the derivatives market to prevent further alleged distortions in price discovery.
By requiring the ₹10 crore deposit, the SAT has opted for a balanced approach. While the tribunal recognized the need for regulatory caution, it also considered the financial impact on the entities by granting them limited access to their funds. This deposit will serve as security, ensuring that funds are available should the regulator’s claims be upheld in the final verdict.
Implications for Market Participants
For investors and market participants, this case highlights the increasing regulatory focus on F&O and complex trading strategies. SEBI has been intensifying its surveillance of cross-segment manipulation, where traders try to artificially influence prices to gain an unfair advantage. The ongoing scrutiny of these firms serves as a warning that regulators are actively tracking synchronized or deceptive trading patterns that disrupt the fair functioning of the market.
Despite this partial relief, the firms are not fully cleared of the allegations. The investigation remains active, and the companies are still subject to restrictions until the case is resolved. The primary risks for these entities include the possibility of further financial penalties, permanent debarment from market segments, or the permanent disgorgement of all alleged wrongful gains. The next major development to watch will be the final outcome of the SEBI probe, which will determine whether the temporary relief evolves into a long-term resolution or leads to stricter regulatory action.