The Securities and Exchange Board of India (SEBI) is examining trading activity recorded during the Closing Auction Session (CAS) conducted on August 3 and 4 to assess whether the significant movements in index levels were driven by normal market activity or involved any attempts to influence closing prices.
According to people familiar with the matter, SEBI has obtained trading-related data from the stock exchanges covering the first two trading sessions following the introduction of the new closing mechanism. The exchanges have reportedly supplied the requested information, which is now being reviewed by the regulator.
The examination is focused on the movement between index levels recorded immediately before the CAS and those established following the auction. The regulator is assessing whether the observed difference falls within normal market behaviour or whether specific trading activity may have contributed to an unusual movement in closing levels.
The review follows concerns among market participants regarding the sizeable changes witnessed during the closing period on the first two days of the new mechanism.
On August 3, the Nifty was around 24,573 at approximately 3:28 pm. By 3:30 pm, the index had moved to nearly 24,774, representing an increase of about 201 points within the final minutes of trading.
SEBI's examination is intended to determine the nature of the trades executed during the CAS and whether any transactions or trading patterns warrant further regulatory scrutiny. The review is currently focused on analysing the available market data and does not, by itself, establish that manipulation occurred. CASansaar