Sebi orders inquiry into leak of stocks under lens

Mumbai: The Securities and Exchange Board of India (Sebi) has ordered an inquiry into allegations that the list of stocks in which exchanges planned to increase margins and bring in price filters were leaked before the formal announcement. Most of the stocks in the list had begun falling before the list was put out by the exchanges on May 31.

“It has been reported in a section of the press that a list of stocks which were to be subjected to additional surveillance measures were leaked prior to the announcement by stock exchanges on May 31, 2018,” Sebi said in a statement on Wednesday. BSE had included 37 stocks including Indiabulls Ventures, Graphite India, Dilip Buildcon and Rain Industries into a category called additional surveillance measure (ASM). To enhance surveillance, the regulator introduced the ASM this year in consultation with stock exchanges. When a stock is moved to the ASM list, it attracts a 5 per cent circuit filter and those trading in these stocks have to deposit 100 per cent margin. The inclusion of stocks into the ASM segment had deepened a sell off in mid and small-cap shares in the last couple of days.