SEBI slaps ₹3.7 crore penalty on firms for CAS market rigging

SEBI charged Copthall Mauritius Investment and Mansi Share and Stock Broking Private Limited as they allegedly manipulated the markets during the newly introduced closing auction session

Source

The Hindu — Business →

Quick Revision

Prelims-testable facts

01SEBI has fined two firms, Copthall Mauritius Investment and Mansi Share and Stock Broking Private Limited, ₹3.7 crore for allegedly manipulating the markets during the closing auction session.
02The closing auction session (CAS) is a newly introduced mechanism by SEBI to manage market volatility.
03SEBI Chairman Tuhin Kanta Pandey warned market participants against attempts to manipulate the cash market through the CAS.
04The regulator's ability to detect market manipulation is stronger under the CAS system than under the earlier VWAP system.
05The manipulation occurred during the Sensex CAS on August 13, 2026.
06SEBI has impounded ₹3.7 crore of alleged wrongful gains from the two entities.
07The bank accounts of the two entities have been restrained by SEBI until the amount is recovered.

Trap alerts

Most people think SEBI only fines entities for market manipulation, but actually, SEBI can also bar entities from accessing the securities market.
Most people think the CAS system is a new concept, but actually, it is a mechanism introduced by SEBI to manage market volatility.

Prelims Practice MCQs

Single facteasy

What was the total fine imposed by SEBI on two firms for market manipulation?

A.₹3.7 crore
B.₹1.85 crore
C.₹5 crore
D.₹10 lakh

SEBI imposed a total fine of ₹3.7 crore on two firms for alleged market manipulation during the closing auction session.

Multiple statementsmedium

Consider the following statements regarding SEBI fines two firms: 1. SEBI fined ₹1 crore on each of the two firms. 2. The fine was imposed for alleged manipulation of the markets during the closing auction session. 3. The closing auction session was introduced by RBI. How many of the above statements are correct?

A.Only one
B.Only two
C.All three
D.None

The fact list states that SEBI fined ₹1.85 crore on each of the two firms, not ₹1 crore. The fine was imposed for alleged manipulation of the markets during the closing auction session, which is a true statement. However, the closing auction session was introduced by SEBI, not RBI.

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