India’s market regulator, the Securities & Exchange Board of India (Sebi), has stopped a hedge fund based in the Cayman Islands from dealing in local securities pending an insider trading probe.
Sebi is investigating “abnormal movement” in L&T Finance Holdings shares.
The regulator alleged in an order that Factorial Master Fund might have made substantial gains by aggressively shorting LTFH shares in the derivatives market and then bidding for the company's shares in its offer for sale (OFS) in March this year.
The role of other entities, including some employees of investment banking major Credit Suisse, arealso under the regulator's scanner.
The order comes amid efforts by the regulator to crack down on insider trading. Its chairman recently said the body is working on a stronger set of rules to curb share manipulation and trading on confidential information.
Cayman, International, L&T Finance Holdings, Credit Suisse