SEBI BARS 7 COS FOR LISTING-DAY PRICE RIGGING
MUMBAI, DEC. 28:
The Securities and Exchange Board of
India on Wednesday issued a series of ad interim ex-parte orders against seven
companies, their directors and their merchant bankers and lead managers to the
issue in the matter of price manipulation on the listing day of the companies'
initial public offerings.
The IPOs of Taksheel Solutions, RDB
Rasyans, Onelife Capital Advisors, Brooks Laboratories, PG Electroplast,
Tijaria Polypipes Ltd and Bharatiya Global Infomedia Ltd were investigated by
the SEBI for price manipulation on listing day. The share prices of Taksheel
Solutions, RDB Rasyans and Brooks Laboratories plunged by 62, 66 and 40 per
cent respectively on listing days. Those of Brooks Laboratories and PG
Electroplast surged 33 and 96 per cent.
SEBI found most of these companies
had been involved in using inter-corporate deposits (ICDs) which were diverted
to other entities who further funded the buying of shares on listing day. SEBI
has barred the seven companies from raising capital from the securities market
until further directions. The market regulator has also barred these companies
and their directors from transacting in the securities market. The ICDs have
been ordered to be called back, while the unspent IPO proceeds will have to be
deposited in an interest-bearing escrow account with a scheduled commercial
bank. The merchant bankers and lead managers have been prohibited from taking
on new assignments till further orders.
Keywords: price manipulation, initial public offerings, listing-day price rigging, Taksheel Solutions, RDB Rasyans, Onelife Capital Advisors, Brooks Laboratories, PG Electroplast, Tijaria Polypipes Ltd, Bharatiya Global Infomedia Ltd, http://www.thehindubusinessline.com/markets/stock-markets/article2755381.ece?ref=wl_markets
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