Sebi sends show-cause notice to broker for 'trades before exit polls'

Capital markets regulator Securities and Exchange Board of India (Sebi) has issued a show-cause notice to an influential broker on Dalal Street for reportedly conducting high-value trades, allegedly in violation of securities law.

Sources said trades of Rs 2,000 crore were executed on Friday by five entities, including a large bull trader, after they got a whiff of the exit polls before these came into the public domain.

The Sensex had jumped 600 points on Friday on hopes exit polls would indicate a victory for the Narendra Modi-led Bharatiya Janata Party.

Heavy buying was done by these entities in the futures and options segment. "We have issued a notice to the broker questioning the source of income for this purchase," said an official source.