Business · India Bureau
Sebi cracks down on market manipulation, bars entities, seizes ₹3.67 crore
The Securities and Exchange Board of India has barred two entities from securities markets and frozen ₹3.67 crore in assets following investigations into manipulative trading practices in Cash Against Shares (CAS) transactions.
LSN India ·
India's capital markets regulator has taken enforcement action against two entities accused of engaging in manipulative trading behaviour involving Cash Against Shares transactions. The Securities and Exchange Board of India (Sebi) barred the entities from participating in securities markets while simultaneously impounding ₹3.67 crore in funds linked to the violations.
Cash Against Shares transactions, commonly used in securities lending and borrowing arrangements, came under scrutiny following Sebi's investigation into irregular trading patterns. The regulator found evidence of market manipulation tactics designed to artificially influence asset valuations or create misleading price signals in these transactions.
The enforcement action underscores Sebi's commitment to maintaining market integrity and protecting investor interests. The watchdog has intensified its surveillance of structured trading mechanisms that could be exploited for market manipulation purposes. Market participants have been cautioned to ensure full compliance with regulations governing CAS arrangements and related settlement procedures.
The impounded funds will remain frozen during the pendency of proceedings, with further action to be determined based on investigation outcomes. This marks another instance of Sebi's proactive stance in identifying and penalising entities that attempt to circumvent regulatory frameworks.