Now Reading: Sebi cracks down on Sensex CAS manipulation by FPI, broker
-
01
Sebi cracks down on Sensex CAS manipulation by FPI, broker
Sebi has barred Copthall Mauritius Investment, a JPMorgan unit, and Mansi Share & Stock Broking from the market for manipulating the closing auction session (CAS) on Sensex options expiry day of August 13. The regulator ordered them to disgorge illegal gains of Rs 2.96 crore and Rs 76 lakh, respectively, amounting to Rs 3.76 crore in total.
The entities allegedly used large orders to spike the Sensex during the CAS order-entry window, turning loss-making options positions into profits. Copthall placed buy orders worth Rs 191 crore in Sensex constituents, accounting for 87% of total trade value, while Mansi placed aggressive sell orders and later cancelled them. The three spikes in the index during the nine-minute window caused Sensex to move within a range of 453 points.
Livemint reports market experts view this as a warning for upcoming monthly expiries. Times of India notes this is the first Sebi order under the new CAS system, introduced in August to replace the volume-weighted average closing price mechanism. The entities have three weeks to respond to Sebi's findings.
Indian Opinion Analysis
Both sources report the same Sebi order factually, but Livemint frames it as a systemic deterrent for future market manipulation, while Times of India emphasises the raw scale of the trades. Livemint leads with the regulatory message and the upcoming expiry dates, giving weight to Sebi's surveillance capability. Times of India leads with the numerical detail of 87% order concentration, making the case about market power rather than deterrence. Neither outlet criticises Sebi or the entities, both stay neutral-report. The measured read is that Sebi is actively monitoring the new CAS mechanism. The key number to watch is the Rs 3.76 crore illegal gain that Sebi demanded be disgorged.
Coverage: 2 sources, 2 neutral
Sources (2): livemint.com (neutral report), timesofindia.indiatimes.com (neutral report)
This story was synthesised by AI from the 2 sources linked above. Methodology and corrections.
Updated: this story now draws on 2 sources.
