The Danger Of SEBI’s Uneven Use Of Enforcement Machinery

On August 19, the regulator issued an order against a foreign portfolio investor and a domestic broker for alleged manipulation during the Closing Auction Session on the BSE Sensex expiry of August 13. According to the order, aggressive orders in constituent stocks distorted the Indicative Equilibrium Price and benefitted their expiry day options positions. SEBI impounded the alleged gains and…