SEBI Bans Two Entities Over Alleged Closing Auction Manipulation

SEBI says two market participants may have used unusual orders during a stock-market closing auction.

Copthall placed very large buy orders and later cancelled many of them.

Mansi placed large sell orders below the usual reference price and later cancelled most of them.

SEBI said these actions were linked to three sudden upward jumps in the Sensex.

The regulator believes the trades may have changed the index’s closing level.

The Sensex closed at 78,080, while SEBI estimated it would have closed near 77,840 without the alleged activity.

The trades may also have helped the entities’ options positions.

SEBI has barred both entities from the securities market and restricted withdrawals from their accounts.

It will conduct a detailed investigation and is also examining a separate sharp fall in the Sensex.