The bank accounts of Copthall Mauritius Investment and Mansi Share and Stock Broking have been impounded to the extent of total Rs367,80,773
FinTech BizNews Service
Mumbai, 19 August, 2026: SEBI has restrained Copthall Mauritius Investment Ltd and Mansi Share and Stock Broking Ltd from accessing the securities markets. Both these entities have been further prohibited from participating in the Call Auction Session (CAS) in the equity segment, whether directly or indirectly, including by placing, modifying or cancelling orders during the CAS, until further orders.
The bank accounts of Copthall Mauritius Investment Ltd and Mansi Share and Stock Broking have been impounded to the extent of total Rs3,67,80,773: Copthall Mauritius Investment-Rs2,96,16,000 and Mansi Share and Stock Broking- Rs71,64,773.
While SEBI restrained Copthall Mauritius Investment Ltd from accessing the securities markets, in case of the Mansi Share and Stock Broking, this direction applies to its proprietary trading account only.
In an Ex-Parte Interim order issued today by the Securities And Exchange Board Of India, it has been mentioned that a detailed investigation/ examination by SEBI is required to be done in the instant matter, with respect to violations committed by Noticees and other suspects. The same may be completed expeditiously without being influenced by the prima facie findings in this order.
The need for immediate and urgent directions is further strengthened by the fact that Noticees are found to have created outstanding positions in the coming weekly Sensex options on August 20, 2026. In such circumstances, allowing Noticees to continue participating in the CAS, pending completion of further examination by SEBI in the matter, may expose the securities markets to the risk of recurrence of blatant misconduct observed in the present case.
Immediate interim directions are necessitated in the interest of maintaining the integrity of the securities market, fair price discovery and preventing further possible misuse of the CAS mechanismin the securities markets by entities adopting manipulative practices.
SEBI surveillance noted abnormal spikes in the Indicative Equilibrium Price (“IEP”) of Sensex on August 13, 2026, Thursday which was also a BSE Sensex weekly expiry day for derivative contracts. The broad concerns seen were in respect of the recovery of 113.61 points in Sensex, sharp price movement in options etc. Accordingly, a detailed examination of the trading activity in the CAS of BSE on August 13, 2026 was carried outby SEBI.
BRIEF FINDINGS OF THE EXAMINATION BY SEBI
During the CAS (15:20 to 15:30) on August 13, 2026 which was a Sensex weekly expiry day on BSE, it was observed that the reference price of the Sensex was 77829.6 at 15:15. The CAS started at 15:20 and the closing priceof Sensexarrived through CAS was78079.96(rounded off to 78080 for calculations) based on the constituents of the Sensex. However, abrupt changes in the movement of IEP were noted during the CAS.
August 13, 2026 was the weekly expiry day of Sensex options and the settlement price of the said options was to be based on the closing price of the Sensex determined during the CAS.
There were 3 substantial price spikes along with one gradual draw down during the CAS.
BACKGROUND
Securities and Exchange Board of India (“SEBI”) vide Circular (“SEBI Circular”) dated January 16, 2026 introduced Closing Auction Session (“CAS”) on the platform of stock exchanges. The framework for CAS as prescribed in the aforesaid SEBI Circular became effective from August 03, 2026. The CAS was made applicable in a phased manner and initially, the closing price of the stocks in the cash segment on which derivative contracts are available are to be determined based on the prescribed framework of CAS.
As per provisions of the said SEBI Circular, the normal trading in the covered scrips in cash segment halts at 15:15 and a reference price for thesescripsis calculated between 15:15 to 15:20. Thereafter, the CAS begins at 15:20 and continues till 15:30subject to random closure by stock exchanges between 15:28 and15:30. The price band applicable during CAS is +/-3% from the reference price of the stock. Thereafter, by 15:35, a single equilibrium price is discovered where maximum quantity of the shares is executable.
A significant price spike (“Spike 1”) was observedin the BSE SENSEX, where the SENSEXIEP rosefrom 77,661.40 to 78,023.42 (+362.02 points) within a two-second interval (15:20:41 to 15:20:43), indicating an abrupt surge. In addition to the first spike, a second significant movement (“Spike 2”) occurredbetween 15:24:08 and 15:24:20, where the BSE SENSEX appreciated by 132.67 points, moving from 77,707.84 to 77,840.51 in a span of 12 seconds.10.Furthermore,a third instance of abnormal price movement (“Spike 3”) was recorded shortly thereafter. Between 15:25:49 and 15:26:17, the BSE SENSEX IEP witnessed a sharp rise from 77,787.94 to 78,193.02. This movement, representedan increase of 405.08 points within a brief window of 28 seconds.11.Also,it is observed that during the interval from 15:21:03 to 15:26:00, the BSE SENSEX exhibited a general downward trajectory, declining from 77,991.05 to 77,893.61. It is pertinent to note that this drawdown was intermittently interrupted by one of the aforementioned price spikes, which caused a temporary deviation from the prevailing downward trend in this period.
Copthall cancelled the highest number ofbuy ordersworth Rs98.11 Crore. The entity cancelled a total of 10,38,201 out of the order quantity of 31,66,651, i.e., a cancellation percentage of 32.79%.
Mansi Share and Stock Broking Private Limited (“Mansi”/“Noticee No.2”) cancelled the highest number of sell orders. The entity cancelled a total of 12,65,000 out of the sell order quantity of 12,77,000, i.e., a cancellation percentage of 99.06%.20.The nature of buy concentration, order placement and order cancellation by the entities mentioned above appearedto warrant a detailed examination of the nature of the orders placed by these entities and the impact of the said order placement and cancellation on the IEP on August 13, 2026. Accordingly, a detailed examination has been conductedinto the price movement of the constituents of SENSEX for the spikes and drawdown.
