Sebi alleges market manipulation scheme involving Copthall, Mansi entities

The Securities and Exchange Board of India (Sebi) has alleged that Copthall and Mansi engaged in a coordinated market manipulation scheme targeting the closing prices of Sensex constituent stocks. According to the regulator's findings, the two entities independently executed a pattern of aggressive order placement and cancellation designed to artificially move stock prices at market close.

The alleged manipulation benefited the entities' derivatives trading positions, which were sensitive to end-of-day price movements in the benchmark index. By strategically timing their orders to influence final closing prices, the entities purportedly gained unfair advantage in their index derivatives trading.

Sebi's investigation identified the orders as part of a deliberate strategy rather than genuine trading intent. The regulator noted that the entities' trading patterns showed clear evidence of coordination in timing and stock selection, though the actual order placements were made independently through different channels.

The allegations form part of Sebi's ongoing efforts to detect and penalise market manipulation activities that undermine fair price discovery and investor confidence in India's securities markets. The regulator's action against Copthall and Mansi underscores the heightened scrutiny on trading practices that exploit structural features of benchmark indices.