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Kalyan Jewellers Flags Suspected Stock Manipulation to SEBI as Shares Rebound

Exchanges sought a response after reports that the jeweller asked SEBI to probe short-selling linked to market rumors.

Overview

  • Kalyan Jewellers approached SEBI alleging unfair, manipulative trading in its shares and requested a temporary halt to F&O trading pending an enquiry.
  • The company described a suspected playbook of building short F&O positions, releasing misleading social-media rumors on January 7, 2025, and coordinating selling pressure.
  • It told regulators that after its November 29, 2024 F&O admission, futures began trading at an unusual discount to spot in late December, which it viewed as a sign of aggressive shorting.
  • BSE on February 9 sought clarification on media reports, and the company replied it was not aware of any information that had not already been disclosed under SEBI rules.
  • Shares climbed about 15% on Monday to close near Rs 438, after the exchange clarification and days after the company reported strong Q3 results.