SEBI Flags First Alleged Manipulation of Sensex Closing Auction
SEBI has passed an interim order over alleged manipulation of the Sensex Closing Auction Session (CAS) on August 13.
According to SEBI, two entities placed large orders during CAS while holding positions in Sensex options that could benefit from the resulting closing price movements.
SEBI has calculated alleged wrongful gains of over ₹3.67 crore and restrained both entities from the securities market.
Interestingly, this happened just days after the new CAS mechanism went live.
CAS was introduced for better closing-price discovery. This case will probably raise an important question: does the new mechanism also create new opportunities for manipulating the closing price?