The Securities and Exchange Board of India (SEBI) has recently intensified its regulatory efforts by conducting surprise inspections on several brokers and mutual funds involved in block deals and concurrent trades. These inspections are part of a broader initiative to curb market malpractices and ensure greater transparency in trading activities.
SEBI’s actions come in response to growing concerns over potential manipulations in the stock market. The inspections targeted transactions executed through mobile phones, iPads, and laptops, aiming to uncover any illicit activities that could harm market integrity.
Block deals, which involve large transactions of stocks typically exceeding Rs 5 crore, and concurrent trades, where multiple trades occur simultaneously, have been under SEBI’s radar due to their potential impact on stock prices and market stability. Institutional investors, such as mutual funds and large financial institutions, frequently engage in these high-volume trades, often possessing privileged information that sets them apart from retail investors.
During these inspections, SEBI officials scrutinized digital devices to trace and verify the legitimacy of the trades. The regulatory body has emphasized the need for stricter compliance and reporting standards to prevent any undue influence on stock prices.
This move by SEBI is expected to enhance market liquidity and provide investors a more level playing field. By ensuring that large transactions are transparent and free from manipulative practices, SEBI aims to bolster investor confidence and maintain market integrity.
For more details on SEBI’s regulations and market activities, visit the NSE India.
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