Inside SEBI's first alleged CAS-rigging case: three Sensex spikes and ₹3.68 crore impounded

CENTRAL FINDING

The first CAS enforcement test linked cash-auction orders to derivatives payoff.

The Securities and Exchange Board of India has restrained Copthall Mauritius Investment Limited and Mansi Share and Stock Broking Private Limited from accessing the securities market and from participating in equity closing auctions until further orders. Its August 19 ex-parte interim order alleges that each entity used large, price-impacting orders during BSE's August 13 Closing Auction Session, a weekly Sensex derivatives-expiry day, to influence the index level in a direction favourable to its options book. Copthall is a JPMorgan Chase unit, according to public records cited by Reuters; JPMorgan declined to comment to the news agency.