The interim order came after a year of steps, each one an allegation at the time
- NSE asked to examine the trading
The first step in the chronology of the order
- Expiry day circular
SEBI tightens the rules for index options on expiry days
- NSE report
NSE submits its examination report
- Caution letter
NSE advises the group to refrain from large cash equivalent positions
- Positions seen to continue
The order records large positions in index options after the caution
- Interim order dated
Prima facie allegations and interim directions
- Update issued
SEBI press release on the interim order
SEBI's interim order is dated 3 Jul 2025. It concerns a group of proprietary trading entities and alleged index manipulation. Its central allegation is that the group pushed index prices in the cash and futures markets while holding large cash equivalent positions in index options, mainly on expiry days. It describes two patterns: an intra-day move, and an extended marking of the close.
The order is interim and prima facie, which means SEBI's observations on the material then on record. It asked for Rs 4,843.57 crore of alleged gains to be held in escrow, restrained the entities from the securities market, told them to cease and desist from the patterns it names, and allowed 21 days for replies. SEBI's press release of 21 Jul 2025 says most restrictions ceased once the escrow was funded. Nothing in the order is a final finding.
The order's own chronology: NSE was asked to examine the trading on 23 Jul 2024 and reported on 13 Nov 2024. SEBI's expiry day circular of 1 Oct 2024 came in the same period. NSE sent a caution letter on 6 Feb 2025, and large positions were seen to continue on 15 May 2025.
The lesson for a retail trader is narrower. On expiry day, large trades in the cash and futures markets can move the index that settles an option, and the settlement rule has changed: the closing auction price since 3 Aug 2026, and the VWAP of the last 30 minutes of continuous trading again from 7 Dec 2026 (SEBI circular of 15 Oct 2026). Read expiry day carefully rather than trade on a story about one firm. The expiry days question lists the current calendar.
Before you trade. Derivatives trading carries a high risk of loss. SEBI's study "Profitability of Individual Traders in the Equity Derivatives Segment (FY25 to FY26)" (August 2026) found that 87.7% of individual traders in equity F&O made net losses in FY26, with aggregate net losses of Rs 91,685 crore. Read the SEBI study