SEBI probing mid-cap shares crash, says Sinha
SEBI Chairman U K Sinha Tuesday said the market regulator is probing Monday's crash in prices of about a dozen mid-cap and small-cap shares.
Hyderabad: SEBI Chairman U K Sinha Tuesday said the market regulator is probing Monday's crash in prices of about a dozen mid-cap and small-cap shares.
Shares of many mid-cap and small-cap companies plunged up to 62 percent on Monday, amid speculation that pledged shares are being sold by certain entities.
Without disclosing specific details, Sinha said SEBI is probing the crash.
"The probe has started yesterday. But it will not be right for me to disclose what we are looking at this point" he was responding to a query at an investors' awareness program organised by the BSE.
He was replying to a query on whether SEBI had ordered a probe into the issue.
Sinha said they would take action whenever somebody tries to manipulate market.
"A similar attempt was made sometime in July in about 4-5 scrips and we identified the people who tried to manipulate the market, passed orders against them and took risk mitigation measures," the Sebi chief said.
On Monday, a massive sell-off was witnessed around the noon time in shares of over a dozen companies. Some of the affected shares managed to recover the lost ground, fully or partly, in the afternoon trade.