Sebi initiates probe into alleged leak of list of companies under enhanced surveillance measures

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New Delhi | Published: June 6, 2018 9:55:28 PM

Markets regulator Sebi today said it has initiated a probe into alleged leak of 37 companies being brought under enhanced surveillance before stock exchanges made the list public.

Sebi, BSE, Apex Frozen Foods, Radico Khaitan, Rain Industries, news on sebi, latest news on sebiThe share price of several stocks, which were part of the list, plunged before the names of the companies were made public. (Reuters)

Markets regulator Sebi today said it has initiated a probe into alleged leak of 37 companies being brought under enhanced surveillance before stock exchanges made the list public. It was alleged that stocks that were to be included in Additional Surveillance Measure (ASM) — a category formed by Sebi– to check market manipulation, was leaked to market operators before the official announcement made by stock exchanges. BSE, on May 31, had announced that it will bring as many as 37 stocks including Bombay Dyeing and Manufacturing Company, Dilip Buildcon, HEG, Rain Industries, Radico Khaitan and Apex Frozen Foods under ASM framework with effect from June 1.

The share price of several stocks, which were part of the list, plunged before the names of the companies were made public. “It has been reported in a section of the press that a list of stocks which were to be subjected to ASM was leaked prior to announcement by stock exchanges on May 31, 2018.

Sebi has taken note of the same and has ordered an inquiry into the matter,” the regulator said in a statement. The Securities and Exchange Board of India (Sebi) introduced the ASM framework in consultation with stock exchanges as part of enhanced surveillance mechanism.

The framework is mainly aimed at checking any abnormal rise in stock prices that do not commensurate with the financial health of companies. The applicable price band for the stocks being shifted the category is 5 per cent or lower.

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