According to sources close to the case, the capital market regulator will initiate an investigation into the alleged price rigging in the shares of the consumer electronics company during the February-March period. The source pointed out that the regulator will question all the 34 brokers for their alleged involvement in the price-rigging case.

The BSE had submitted a report to Sebi last month on the price-rigging case in which it had clearly pointed out that it suspects the spurt in the prices of BPL in February-March resulting from price manipulation by a group of stock brokers.

Sebi has, in an attempt to clarify the situation, also asked the National Stock Exchange (NSE) to submit data on share trading activity during the same period.In its reportthe BSE had listed the names of 34 brokers involved in the price-rigging case of BPL shares. According to the source, these brokers were identified on the basis of a common set of clients.

The price manipulation, according to the BSE report, was allegedly carried out by circular trading among this common set of clients. The Sebi investigation will seek to establish whether these clients were independent entities or were acting as a front for these brokers. Sebi is learnt to have appointed an enquiry officer as well.