Sensex plunges over 2,200 points in 5 minutes during CAS
The Sensex had a roller coaster day on Thursday, dropping more than 2,200 points in just five minutes during the first expiry under SEBI's new Closing Auction Session (CAS) rules.
CAS is meant to stop price manipulation by discovering closing prices for all those 200-odd stocks on which equity derivatives contracts are traded, while others still use the old system.
Sensex rebounds, SEBI orders 3.8cr disgorgement
After that dramatic fall, Sensex bounced back nearly 2,000 points but still closed down by 539 points. Nifty saw a similar dip and partial recovery.
The sharp moves in major stocks like Reliance and HDFC Bank got traders talking online: many worry these wild swings could open doors to quick profits and possible manipulation.
A week ago, SEBI banned two firms and ordered disgorgement of illegal gains worth nearly ₹3.8 crore.