India Said to Review Slump in Financials for Irregularities
- Sebi may launch investigation if wrongdoing found, people say
- Two-day selloff in financials has erased $13 billion in value
A security guard walks past the National Stock Exchange of India Ltd. (NSE) building in Mumbai, India
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India’s market regulator is examining Friday’s sharp moves in shares of Dewan Housing Finance Corp., Yes Bank Ltd. and other lenders for possible trading irregularities, people with knowledge of the matter said.
The Securities and Exchange Board of India is looking into whether brokers and investors colluded during the sharp selloff and subsequent recovery in financial shares, the people said, asking not to be identified due to the sensitivity of the matter. The rout, which deepened Monday, has erased about $13 billion from the value of a gauge of financials.