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Kalyan Jewellers says it detected unusual trading patterns and circulation of unverified rumours that were intended to create panic among investors and push the stock price lower.
Kalyan Jewellers told Sebi that on January 7, 2025, between 10:30 am and 11 am, multiple rumours began circulating in the market.
Kalyan Jewellers has approached market regulator Sebi alleging unfair and manipulative trading in its shares and has sought regulatory intervention, including a temporary suspension of trading in the futures and options (F&O) segment until an enquiry is completed, Moneycontrol reported on February 9, 2026.
In a letter addressed to the Integrated Surveillance Department of the Securities and Exchange Board of India (Sebi), the jewellery retailer said it had detected unusual trading patterns and the circulation of unverified rumours that, according to the company, were intended to create panic among investors and push the stock price lower. The communication was sent sometime in 2025 and has not been reported earlier, the report said.
According to Kalyan Jewellers, its stock was admitted to the F&O segment on November 29, 2024. The company said that towards the end of December 2024, futures contracts began trading at a discount to spot prices, an outcome it described as abnormal and suggestive of aggressive short positioning.
The company further told the regulator that on January 7, 2025, between 10:30 am and 11 am, multiple rumours began circulating in the market. These included allegations related to the arrest of promoters and bribery of fund managers, all of which Kalyan Jewellers has denied.
In its submission, the company said it believes short positions were built up from late December 2024 and that the rumours were released as part of a premeditated strategy. This, it claimed, happened immediately after it issued its quarterly business update for the December quarter of FY25 in early January, in line with its established disclosure practices.
Kalyan Jewellers alleged that the suspected modus operandi involved building short positions through futures and options, spreading misleading information on social media platforms, and coordinated selling to intensify the fall in the share price. The company also said that some individuals named in its annexures were not registered with Sebi as investment advisers and therefore were not authorised to issue investment recommendations.
As per documents submitted to SEBI and the stock exchanges in 2025, Kalyan Jewellers said its share price declined from Rs 745 on January 6 to Rs 440.65 by January 30, 2025, around a 41% fall. During the same period, the company’s market capitalisation dropped from about Rs 76,795 crore to Rs 45,450 crore, based on figures cited by the company.
Citing investor protection and concerns over market integrity, Kalyan Jewellers urged SEBI to direct stock exchanges to suspend trading in its F&O contracts as a precautionary step while investigations are underway.
Emails sent by Moneycontrol to Sebi and Kalyan Jewellers seeking comment did not elicit a response.
Meanwhile, the BSE in a statement on February 9 said, “The Exchange has sought clarification from Kalyan Jewellers India Ltd on February 9, 2026, with reference to news appeared in https://www.moneycontrol.com dated February 9, 2026 quoting ‘Kalyan Jewellers flags alleged market manipulation to SEBI, seeks suspension from F&O segment’.”
The stock has remained volatile over the past year despite steady earnings. After hitting a lifetime high of Rs 770 in December 2024, shares have corrected by about 45% and are currently trading around Rs 416 apiece, according to stock exchange data.
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February 09, 2026, 12:58 IST
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