I have a different opinion on this order against the two entities supposedly involved in the cas auction manipulation. The outrage seems to be about this: Placed buy orders at highest possible point or sell at lowest possible point (3% higher or lower) and that is bad Because of that the cas equilibrium price spiked They cancelled those orders They benefited from options positions in the index My opinion is on the first two, as I'm not sure how established the others are without their defense. In the cas it is only sensible to place limit buy orders as high as you can or sell as low as you can. Watch the cas today also, you will find that most orders and quantities are people buying at obscenely high prices or selling at obscenely low. This is how it should be. Those are limit orders and are designed be executed only at the equilibrium price not at the obscene price. Now te reason is simple. It's the way orders are filled in the cas. Every buy order at the highest price is obviously also a buy order at any price below that. When they match orders, after market buy and sell orders cancel each other out, the remaining orders are like that. Lowest price sell orders will be matched against the highest price buy orders. Once that's done the next set are matched and so on. To have buy orders at the highest possible price means you're first in the queue after market.orders, but you get the equilibrium price. The equilibrium price is determined somewhere in the middle by relatively smaller players who place orders, but because of the skew or orders at the extreme ends of the order book it is possible they don't get any fills. That's ok and a teething problem The regulator might want to tone down the accusation that placing buy orders 3% above ref price is bad. No, it's the only way to try and guarantee execution. Cancellations are not good after a point...hong kong disallows cancellations in the last few minutes and we should too. The rest we should wait for a final order. (Podcast on cas coming soon!)
SEBI has passed an Ex-Parte Interim Order in the matter of manipulative trades during CAS on SENSEX expiry at BSE- August 13, 2026. Details at: https://www.sebi.gov.in/enforcement/orders/aug-2026/ex-parte-interim-order-in-the-matter-of-manipulative-trades-during-cas-on-sensex-expiry-at-bse-august-13-2026_103778.html #SEBI https://x.com/SEBI_updates/status/2090123118350397463/photo/1
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