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SEBI chief says no manipulation seen in new closing auctions
SEBI Chairman Tuhin Kanta Pandey said the regulator has not observed manipulation in the newly introduced closing auction sessions so far, but continues to monitor data. He noted that mutual fund participation…
The Story in Brief
SEBI Chairman Tuhin Kanta Pandey said the regulator has not observed manipulation in the newly introduced closing auction sessions so far, but continues to monitor data. He noted that mutual fund participation in these sessions had risen to around 20, 25%.
Pandey also said SEBI expects to release a detailed paper on losses in the derivatives market within eight to 10 days. He cautioned that options trading, particularly on expiry days, was not as straightforward as many investors assumed and could result in significant losses.
The Indian Opinion
The SEBI chief's assurance will not silence critics who claim closing auctions are prone to price rigging. The real test will be the data that SEBI eventually publishes on manipulation instances. Meanwhile, the caution on options losses is timely: retail traders often treat expiry day trading as easy money. The upcoming paper detailing derivatives losses must name numbers and categories of losers, or the warning will remain just talk. Will it reveal how many small investors have been wiped out?
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
