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Sebi probing Rs2,000-cr single day deal by broker

13 May 2014

The Securities and Exchange Board of India (Sebi) has stumbled upon an over Rs2,000-cr purchase by a domestic individual in the stock market amidst talks of foreign institutional investors pumping millions of dollars into Indian equities to pitchfork the market to a record highs.

The market regulator is reported to have sought details from the individual broker who made the purchase of over Rs2,000 crore on Friday.

Sebi, however, has not revealed the identity of the people involved in the deal.

Reports quoting market sources, meanwhile, said the person used to trade in small quantities, but on Friday, the regulator's surveillance department tracked him putting through a large deal.

The regulator served the notice on Monday after a thorough scrutiny of Friday's deal, according to sources.

Sebi has been keeping a close watch on markets after shares rallied to record highs on Friday and Monday on speculation that exit polls would show the Bharatiya Janata Party and its allies winning a majority in the election.

Several traders attributed the gains, which sent the Sensex and the Nifty to record highs on Friday and Monday, to leaked results from exit polls.

Four major exit polls forecast a victory for the Narendra Modi-led coalition, with results ranging from 261 to 289 Lok Sabha seats.

BJP and its allies need to cross the 272-seat mark to secure a majority in the Lok Sabha.

Besides the regulator, the surveillance departments of bourses are also keeping a close watch on unusual dealings on the stock market.