Now Reading: SEBI bars two entities for Rs 3.68 crore closing auction manipulation
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SEBI bars two entities for Rs 3.68 crore closing auction manipulation
Market regulator SEBI has barred Copthall Mauritius Investment Ltd and Mansi Share and Stock Broking Pvt Ltd from the securities market and ordered them to deposit Rs 3.68 crore in wrongful gains. The ex-parte interim order, issued on Wednesday, alleges the two entities manipulated the Sensex Closing Auction Session (CAS) on 13 August, a weekly expiry day for derivatives.
Livemint reports that this is the first time SEBI has initiated formal proceedings against any entity trading in the auction session. SEBI Chairman Tuhin Kanta Pandey, speaking at the FICCI Capital Markets Conference, said the regulator will take strict and immediate action against CAS manipulation. The Hindu Business Line reports that SEBI is also asking brokers to accept after-market orders during the five-minute transition period before CAS, starting September, to improve liquidity and price discovery.
According to the regulator, Copthall made an illegal gain of Rs 2.96 crore by placing large buy orders above reference prices across all Sensex constituents, while Mansi made Rs 71.65 lakh by placing and quickly cancelling sell orders below reference prices. Business Today notes SEBI said the new CAS framework gives it greater ability to detect manipulation compared with the earlier VWAP system.
Indian Opinion Analysis
The three outlets offer near-uniform straight reporting of the SEBI order and the chairman's comments. The Hindu Business Line focuses on the regulatory process and future market improvements, such as after-market orders, framing the story as an institutional evolution. Livemint and Business Today foreground the specific trading tactics and the first-ever enforcement action, giving more detail on the alleged manipulation mechanics. All three treat the SEBI account as authoritative without independent scrutiny. A careful reader can note that while SEBI asserts the CAS system is more transparent, the fact that sophisticated manipulation was detected within ten days of its launch (3 August) suggests the new framework's detection capabilities are working, but also that market participants are already testing its boundaries. Watch for the outcome of the hearing on August 20, when SEBI noted the entities had outstanding positions.
Coverage: 3 sources, 3 neutral
Sources (3): thehindubusinessline.com (neutral report), livemint.com (neutral report), businesstoday.in (neutral report)
This story was synthesised by AI from the 3 sources linked above. Methodology and corrections.
Updated: this story now draws on 3 sources.
