Sebi 'Keeping Close Watch' After Share Surge: Report

Capital market regulator Securities Exchange Board of India (Sebi) is keeping a close watch on markets after shares rallied to record highs on speculation that exit polls would show the opposition Bharatiya Janata Party (BJP) and its allies winning a majority in the elections, a senior official with direct knowledge of the matter told Reuters.

Multiple traders attributed the gains in Indian shares, which sent the Nifty to record highs on Friday and Monday, to leaked results from exit polls.

Media organisations were not allowed to release their exit polls until 6.30 pm (1300 GMT) on Monday after the conclusion of the country's five-week long election.

"To ensure market integrity Sebi and exchanges have been keeping a close watch on the market movements and are making necessary enquiries wherever the trades appear to be unusual," a senior official at Sebi told Reuters.

The Sebi official was responding to a Reuters inquiry about whether the regulator was looking into the market speculation. He declined to be identified because he was not authorised to talk to the media about the market regulator's actions on the matter.

Sebi did not respond to an emailed request for comment.

"The surveillance department would keep a close watch on unusual things. Sebi remains in touch with surveillance on regular basis," said a spokesman at BSE Ltd, India's oldest exchange.

"We can't comment on this," said a spokeswoman for National Stock Exchange (NSE), India's largest exchange.

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