India’s Securities and Exchange Board issued an ex-parte interim order involving Copthall Mauritius Investment and Mansi Share and Stock Broking over alleged trades during the August 13 SENSEX closing auction. The firms now face preliminary market restrictions, making the action significant for participants using India’s new closing-price process.
Key Facts
- India: SEBI published the ex-parte interim order on August 19, 2026.
- Preliminary action: The order does not finally establish that either firm manipulated the market.
- Reported restraint: Reuters reported that the order remains effective while SEBI continues its investigation.
What the order changes
An ex-parte interim order is an immediate administrative action issued before the affected parties receive a final determination. SEBI’s official record identifies the action as interim and concerns alleged manipulative trades during the BSE closing auction.
Reuters reported, in a report carried by Investing.com, that SEBI barred both firms from the securities market. Reuters also reported that the regulator directed the impounding of about 36.8 million rupees in alleged wrongful gains.
The reported total includes about 29.6 million rupees attributed to Copthall and 7.2 million rupees attributed to Mansi. These amounts reflect SEBI’s preliminary allegations, not a final liability finding.
What SEBI alleges
Reuters reported that SEBI attributed aggressive buy orders during the auction to Copthall. The same report said SEBI attributed large sell orders and later cancellations to Mansi.
SEBI alleges that the activity distorted prices among stocks included in the SENSEX. The order concerns trading on August 13, when weekly derivatives contracts tied to the index expired.
The interim action does not establish that the two firms coordinated with each other. It also does not represent a conviction or final finding that securities rules were violated.
Why the closing auction matters
SEBI formally introduced the Closing Auction Session framework in a January 2026 circular. The auction creates a separate process for determining official closing prices in India’s equity cash market.
Closing prices can affect the value and settlement of products tied to an index. That makes the integrity of the auction important to investors, brokers and derivatives traders.
What happens next
Reuters reported that the restrictions remain in place while SEBI continues investigating. Later agency proceedings could confirm, change or end the preliminary restraints.
