The Securities and Exchange Board of India on Friday said it would probe the rumours, which caused pandemonium in the stock market on Friday.
A Sebi official said, on the face of it, it appeared that certain market participants were orchestrating the fall by spreading rumours.
Given that the market seemed to be overheated and vulnerable to bad news, certain market participants may be playing mischief to cause a temporary market fall with an intention to capitalise on the move.
"This is a cause for concern and we will certainly dig deeper into this issue," the Sebi official said.
The market regulator would analyse detailed data before proceeding further on the issue, Sebi sources said.
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