The market regulator is looking into relevant data collected from the stock exchanges through its internal market surveillance system. SEBI may also seek information from brokerages as well as the companies involved
Market regulator Securities and Exchange Board of India has initiated a probe into the stock price crash in Multi Commodity Exchange (MCX) and its promoter Financial Technologies India Ltd (FTIL) and has asked for information from stock exchanges.
Financial Technologies shares fell by over 62% today, while MCX hit its lower circuit following concerns about another group entity National Spot Exchange Ltd (NSEL).
According to media reports, SEBI began looking into the matter a few days ago, as the stocks of the two companies had been falling for quite some time with unusual volumes.
The regulator is also looking into the trading pattern of some brokerage and many other entities in the two stocks to ascertain whether they had any advance information about problems at NSEL.
Last month Financial Technologies had said that it suspected some vested interests and a bear cartel were behind the sharp plunge in the share prices of the company and its unit MCX.
In a statement, the company said that since 15 July 2013 there have been many malicious rumours afloat on various media. "The series of rumours that are spread in the market have a pattern more particularly to spread on Friday and such rumours are spread by some unscrupulous elements with a design to depress the price of FTIL and damage its reputation," Financial Technologies added.
Anjani Sinha, chief executive of NSEL, told a television channel that the commodity bourse has sufficient physical stocks to cover its outstanding exposure.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
