How does SEBI’s new closing auction system work, and how did two firms manipulate it?
The Indian Express 5 hrs ago·20 Aug 2026, 11:47 am
Economy The Indian Express
SEBI has introduced a new closing auction mechanism to improve price discovery and reduce volatility in the market. This system sets a fixed time window at the end of the trading day where all buy and sell orders are matched to determine the final closing price. Previously, this price was simply the last traded price, which could be easily influenced by a few large trades.
Two firms were recently found to have exploited this system by placing aggressive buy orders right before the auction closed. This artificial buying pressure pushed the stock price higher, allowing them to sell their own holdings at a significantly better price. SEBI has penalized these firms for market manipulation, highlighting the need for stricter oversight of closing auction volumes.
Key takeaways
- Category: Economy.
- AI reads the tone as negative (potentially bearish) for the stock.
- Flagged as a high-impact, market-moving story.
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