SEBI Cracks Down: ₹3.68 Cr Impounded in Sensex Manipulation Scandal!
SEBI Cracks Down: ₹3.68 Cr Impounded in Sensex Manipulation Scandal!
Market watchdog SEBI has banned two entities and impounded ₹3.68 crore for manipulating the Sensex Closing Auction. Learn how this crucial action protects market integrity!
India's market regulator, SEBI (Securities and Exchange Board of India), has taken decisive action against alleged manipulation in the Sensex Closing Auction Session (CAS), banning two entities and impounding nearly ₹3.68 crore in illicit gains. The crackdown targets Coptthall Mauritius Investment and Mansi Share & Stock Broking, barring them from participating in the securities markets.
The action follows a thorough examination of trading activities during the Sensex weekly expiry on August 13. Investigators observed three significant spikes in the indicative equilibrium price, which raised red flags. SEBI's inquiry revealed prima facie manipulative trading, characterized by sharp price movements, aggressive orders, and their apparent links to expiry-day Sensex options positions.
The Closing Auction Session is a relatively new mechanism, introduced by SEBI to ensure more efficient discovery of closing stock prices, replacing the older Volume Weighted Average Price (VWAP) system. SEBI is closely monitoring this new system to prevent any attempts at manipulation that could undermine market integrity.
In light of the incident and to ensure a smoother transition for market participants, SEBI has also issued an advisory to brokers. They have been asked to accept investor orders during the initial five-minute transition period of the CAS. This measure aims to facilitate the process and prevent further disruptions, reinforcing SEBI's commitment to a fair and transparent market environment.
