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The unprecedented two-day market surge, which saw the benchmark indices gain over five per cent, has come under regulatory scanner.
According to sources, market regulator Securities and Exchange Board of India (Sebi) is probing instances of stock price manipulation. Besides putting its own surveillance department into an overdrive, it has also put exchanges on high alert.
“To ensure the integrity of the market is not compromised, Sebi and exchanges are keeping a close watch on market movements. We have initiated necessary inquiries wherever trades appear unusual,” said a senior Sebi official.
The regulator has asked stock exchanges to closely monitor market movements this week, when the election results are due to be announced. The market is expected to remain volatile as it reacts to the exit polls on general elections starting Tuesday till the actual outcome on May 16.
Regulatory officials said they were also keeping a check on entities spreading unsubstantiated price-sensitive information.
Markets had been been under considerably scrutiny as the election results were nearing, said an exchange official. “Sebi has been regularly seeking data to check any atypical trades. We have had several meetings with the regulator to assure the exchange systems are strong enough to withstand the market volatility arising out of election related news flow,” said the official.
A query sent to exchanges and Sebi on the issue remained unanswered.
