SEBI Bans Two Entities Over Closing Auction Session Spoofing
Why in the news
In August 2026, SEBI acted swiftly against two market participants accused of distorting closing prices with spoofed orders in the Closing Auction Session.
Key facts
- Entities barred: Copthall Mauritius Investment and Mansi Share & Stock Broking.
- Method: very large orders placed and cancelled within seconds.
- This is spoofing: orders entered with no plan to execute, only to nudge the price.
- Effect: avoiding losses or earning gains on derivatives positions.
| Term | Meaning |
|---|---|
| Impounding | SEBI holds money seen as wrongful gain until final proceedings |
| Proprietary trading | A broker trading with its own money, not clients’ |
Why the close matters
All buy and sell orders are matched at one equilibrium price rather than an average over 30 minutes. This price settles derivatives, so a small shift can turn an option profitable, and a short window lets a big order move it cheaply.
About SEBI
Securities market regulator under the SEBI Act, 1992, based in Mumbai.
Exam angle
- Spoofing is barred by the PFUTP Regulations (Prohibition of Fraudulent and Unfair Trade Practices).
- SEBI law: SEBI Act, 1992; HQ Mumbai.