00:00In this particular case, the way we read the order, it seems that there's a particular way of
00:05trading of chain straight which was not found appropriate. And Sebi issued, in fact, the exchange
00:12issued a letter to the team, hey guys, this kind of trading is not proper, please, whatever they
00:19would have written there. And nothing seemed to move and finally Sebi has passed this order.
00:24It's an interim order. And in fact, the allegations of Sebi are around two broad areas. The first
00:33area is that you've kind of manipulated a market. What you did is, in the cash segment, you keep
00:39on taking strong long positions. At the same time, in the derivative segment, you were going short,
00:46much larger than what you were long in that cash. And then, after your limited position,
00:51suddenly you started squaring up your cash position later in the day, got the prices down,
00:58and then in your huge short positions in derivatives, it made a lot of money.
01:03So that is angle one. The angle two is just kind of impacting the closing prices,
01:12where on an expiry day, you took a huge position in the derivative segment, and then you made strong
01:18cash positions in such a way that your positions in the expiry, in the derivatives, make you a lot of
01:26money. These are two broad areas that seem to have come out. So sir, this penalty of over like
01:354,843 crore, it's among the highest Sebi has imposed. So sir, what made this case so significant that
01:44Sebi has imposed such a huge penalty on that group?
01:49The JP has been always clear. You, however big or small you may be, if you do something wrong,
01:55which we believe is wrong, we are going to come after you. And so you may be the biggest guy on
02:03the planet or the smallest guy, it doesn't matter. If there is anything, any of your behavior that
02:09I believe as Sebi, that's what they say, impacts the market, it is manipulated, it is not normal,
02:14I will come after you. And that is the messaging Sebi has always followed and they continue to do that.
02:19Okay, sir. So what is this intraday index manipulation? Sebi used this term. So like for
02:27the readers, if we can explain it in simple language, like what the company did?
02:33So the allegation is, as you would know, the cash market and the derivatives market are connected.
02:40But the number of players in the cash market are lesser and number of players in the derivatives market
02:44are much more. So the allegation is, first you took a huge position, you took some position in the cash
02:52segment, right, which kind of made, either made the market go up or made the market stabilize or
02:59show that there's some interesting buying interest there. But at the same time, you were going big
03:03time short in the derivatives. All right. And so you have this position, say in the morning,
03:10and then by late end of the day, you square up your cash position very sharply. You keep on selling
03:15it very sharply. And because you're a large player, the market tends to move. The market tends to move
03:21and the cash would make a loss of say, 100 rupees. But in derivatives, because of this, we will probably
03:26make a profit of say, 1000. And this is the kind of behavior which they say, keep us, this won't work.
03:33This is not proper. And sir, how this entire false bullish trend has impacted the retail investors
03:41in the dividend market? So personally, sir, there are a lot of players, as the CB order says,
03:47lots of players who trade in the dividend segment. And every retail player or every stakeholder,
03:55he's there to pay the price risk. If something happens, prices go up, okay, fine. If they go down,
04:01fine. What I don't want to pay for is manipulation risk. I should not be made a fool of. If something
04:08happens, if a war breaks out, market falls, I lose money, fine. That's the risk I'm ready to take.
04:13I'm ready to take every crisis. I'm ready to take the economic risk. I'm ready to take a political risk.
04:19But as a market player, I am not happy taking manipulation risk. But having said that, this is
04:25the allegation of regulators from this order. Manipulation happened and they've taken a strong
04:30action against it. And sir, CB in its order mentioned that, okay, right now, we are just
04:37making some penalty or impounding jointly and severely the profits they made on a particular
04:44timeframe. They also mentioned that on these particular dates, you manipulated the derivative
04:49segments. So CB order says that they are impounded jointly and severely. What does it mean? Like,
04:54more actions will come or like, it's just... No, jointly severely the technical point,
05:00I understand that when there are three, four people involved or a group of people involved,
05:04all of them are liable. One cannot say that he is liable, I am not liable. So everybody is liable
05:11for that thing. That is what jointly severely means. It's my understanding.
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