Kalyan Jewellers Flags Alleged Market Manipulation To SEBI, Seeks F&O Suspension

Kalyan Jewellers India has approached the market regulator alleging unfair and manipulative trading practices in its stock and has sought regulatory intervention, including a temporary suspension of trading in the futures and options segment.

In a letter sent sometime in 2025 to the Integrated Surveillance Department of Securities and Exchange Board of India, the company said it observed unusual trading patterns and the circulation of unverified rumours that it believes were aimed at creating panic among investors and exerting downward pressure on the share price. SEBI’s response to the communication is not known, and the letter has not been reported previously.

Abnormal F&O Activity Flagged

Kalyan Jewellers said its shares were included in the futures and options segment on November 29, 2024. It alleged that by late December 2024, futures contracts began trading at a discount to spot prices, which it described as abnormal and indicative of aggressive short positioning.

According to the company, multiple rumours began circulating on January 7, 2025, between 10.30 am and 11.00 am. These included claims relating to the arrest of promoters and bribery of fund managers, which the company has denied.

Alleged Coordinated Strategy

In its submission, Kalyan Jewellers stated that it believes short positions were initiated from late December 2024 and that misleading information was released immediately after its quarterly business update for the December quarter of FY25.

The company alleged that the suspected strategy involved taking short positions through derivatives, spreading unverified information on social media, and coordinating selling to amplify price declines. It also said some individuals referenced in its annexures were not registered with SEBI as investment advisers.

Share Price And Market Capitalisation Impact

In documents submitted to the regulator and stock exchanges, the company reported that its share price declined from ₹745 on January 6, 2025, to ₹440.65 by January 30, 2025, a decline of about 41%. Over the same period, its market capitalisation declined from around ₹76,795 crore to ₹45,450 crore, according to figures cited by the company.

Citing investor protection and market integrity, Kalyan Jewellers has urged SEBI to direct stock exchanges to suspend trading in its futures and options contracts as a precautionary measure until the enquiry is completed. Emails sent to SEBI and the company remained unanswered.