The Securities and Exchange Board of India has frozen ₹28.12 crore linked to stockbroker Prrsaar Sampada and Chaubara Eats for alleged price manipulation. The regulator claims the entities used complex derivatives trades to artificially influence stock prices. Six parties have been barred from derivatives trading while the investigation proceeds.
The Securities and Exchange Board of India (SEBI) has issued an interim order to freeze and impound ₹28.12 crore, alleging that specific market entities engaged in a sophisticated scheme to manipulate stock prices through derivatives trading. The regulatory action follows an examination of trading patterns between December 2025 and June 2026.
SEBI alleges that Prrsaar Sampada, a SEBI-registered stockbroker, and Chaubara Eats, along with four individuals, used a coordinated strategy to generate illegal gains. The mechanism involved taking planned losses in stock futures while simultaneously booking larger, offsetting profits in stock options on the same underlying shares. By doing this, the regulator claims the entities artificially influenced the market price of the stocks, which benefited their positions in the options segment.
This type of activity is often referred to as cross-segment price manipulation. It is considered a complex violation because it uses two different derivatives products linked to the same stock to mask the true nature of the trading activity. The regulator examined 23 different instances where this pattern was observed. The stocks involved in these trading patterns included names like KFin Technologies, Swiggy, Prestige Estates Projects, Bharat Dynamics, Godrej Properties, Waaree Energies, Jio Financial Services, and Hindustan Zinc. It is important for investors to note that SEBI has explicitly stated the regulator does not allege that these listed companies participated in or were aware of the suspected scheme.
Following this order, six parties—Prrsaar Sampada, Chaubara Eats, Ved Prakash Gupta, Priti Gupta, Saroj Gupta, and Gaurav Tomar—have been restricted from trading in the derivatives market. They are required to deposit the impounded funds into an escrow account. However, these entities are still permitted to trade in the cash equity market, as the ban applies specifically to derivatives. SEBI has also frozen their demat accounts and ordered them to disclose their assets within 15 days.
For the broader market, this case highlights the increasing focus of the regulator on broker-level compliance and the misuse of derivatives products. While the investigation remains in the interim stage, it serves as a reminder that regulators are actively monitoring cross-segment trading for signs of artificial price distortion. The enforcement action against these entities is expected to undergo further scrutiny as the affected parties submit their responses and the proceedings continue.
The next critical update for investors and market participants will be the official response from the named entities and the subsequent findings from SEBI’s final hearing. The regulator’s move underscores a commitment to maintaining market integrity by identifying and penalizing actors who attempt to exploit derivatives-market mechanisms for artificial gain.