HDFC Securities Managing Director and Chief Executive Officer Dhiraj Relli has backed the Securities and Exchange Board of India's (SEBI) action against Copthall Mauritius and Mansi Share for cash market manipulation, describing the matter as a one-off incident rather than a sign of any broader problem in the Indian market.

SEBI, India's capital markets regulator, banned Copthall Mauritius and Mansi Share in a case of manipulation in the cash market — the segment of the stock market where shares are bought and sold for delivery, as distinct from the derivatives segment. According to Relli, the enforcement action concerns specific entities and does not point to a systemic issue across the market, underscoring the role of regulatory intervention in keeping market conduct under scrutiny.

Speaking on CNBC-TV18, the HDFC Securities chief also explained the changes to the call auction mechanism that come into force in Indian markets from September 7, including new after-market order windows, and discussed their expected impact on liquidity.

Call auctions are designed to pool orders into a single window and arrive at one equilibrium price, helping exchanges curb volatility and ensure an orderly start to trading. Indian exchanges have operated a pre-open call auction session since 2010 to set opening prices, and the upcoming changes extend the auction format beyond regular hours, giving investors an additional window to place orders after the normal trading session closes at 3:30 p.m. That makes the adjustment relevant not only for trading workflows but also for how orders are matched outside the main session, which market participants will be watching as the new window takes effect.

HDFC Securities, the broking arm of HDFC Bank, is one of India's largest retail brokerages, offering trading and investment services across equities, derivatives, and other asset classes.

Source: CNBC-TV18