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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
A SEBI crackdown has revealed that Bharat Global Developers Ltd used every trick in the book to drive up its share price so its preferential stockholders could make a killing. What remains unexplained though is the little-known firm’s dealings with Reliance.
At around $1.5 billion, it could have been a scam for the record books. That is, if the Securities and Exchange Board of India had not acted. But it did, taking quick action on the basis of a complaint received on 16 December, and cracking down on Gujarat–based Bharat Global Developers Ltd, a company listed on the BSE.
The market regulator stopped trading of the BGDL stock in late December and issued a show-cause notice to the company.
Even so, about Rs 270 crore ($30 million) in fraudulent gains had been made. This is a significant amount of money. But …
Thinly traded listed entities have long served as breeding grounds for stock manipulation, hurting investors. The regulator, the NSE and BSE now want to fix things by focusing on efficient delisting.
The newly announced levy on UPI payments undermines the very foundation of using digital payments for stock market investing. Brokers are in a tizzy.
A month on, CAS has only amplified volatility, manipulation and confusion rather than containing them.
