SEBI bars 2 entities over ‘prima facie’ manipulation in new closing auction
Regulator impounds ₹3.68 crore after finding aggressive orders moved Sensex to benefit expiry-day options positions
The Securities and Exchange Board of India (SEBI) has barred two entities - Copthall Mauritius Investment and Mansi Share and Stock Broking - for allegedly manipulating the markets during the newly-introduced closing auction session (CAS) of the Sensex. SEBI found prima facie evidence of aggressive buy and sell orders in Copthall's trades, causing a significant upward movement in the index.
The broker was ordered to repaid ₹2.96 crore and have its bank accounts frozen. Mansi, on the other hand, placed large sell orders below prevailing levels, suppressing the index and pocketing a gain of about ₹71.65 lakh by cancelling its orders just before the close. SEBI has emphasized that the entities' actions were likely aimed at benefiting their own options positions and highlighted the need for strict action against manipulative practices in the CAS mechanism.
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