Sebi keeping ‘close watch’ after share surge

The Sebi is keeping a close watch on markets after shares rallied to record highs on speculation that exit polls would show the BJP and its allies winning a majority in the elections, a senior official with direct knowledge of the matter said.

The Securities and Exchange Board of India (Sebi) is keeping a close watch on markets after shares rallied to record highs on speculation that exit polls would show the Bharatiya Janata Party (BJP) and its allies winning a majority in the elections, a senior official with direct knowledge of the matter said.

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“To ensure market integrity Sebi and exchanges have been keeping a close watch on the market movements and are making necessary enquiries wherever the trades appear to be unusual,” a senior Sebi official said.

Sebi did not respond to an emailed request for comment.

“The surveillance department would keep a close watch on unusual things. Sebi remains in touch with surveillance on regular basis,” a spokesman at Bombay Stock Exchange said.

“We can’t comment on this,” a spokeswoman for National Exchange said.

Markets have seen previous cases of sudden sharp movements in shares, raising suspicions about insider trading.