India’s market regulator imposed an interim ban on two firms for allegedly manipulating prices in weekly derivatives tied to the BSE Sensex, the Securities and Exchange Board of India said on Wednesday.
The Securities and Exchange Board of India barred Copthall Mauritius Investment and Mansi Share and Stock Broking from accessing securities markets, citing violations during the August 13 expiry of weekly Sensex derivatives contracts. Regulators alleged the firms distorted closing prices in the newly introduced closing auction session, where final official prices are set each trading day.
Copthall allegedly placed aggressive buy orders while Mansi executed large sell orders, according to the regulator. The activity was said to have influenced the prices of Sensex constituent stocks. Mansi later canceled much of its sell-side activity, SEBI noted.
The regulator ordered the seizure of ₹36.8 million ($384,324) in assets from the two firms, including estimated wrongful gains of ₹29.6 million for Copthall and ₹7.2 million for Mansi. The interim measures remain in effect pending further investigation.
