Market cap increased from Rs 3 crore to Rs 4925 crore, SEBI unearths the trick of fund rotation - Moneycontrol.com
· Business · Moneycontrol, Economic Times
The Securities and Exchange Board of India has identified a fraudulent scheme involving the artificial inflation of a company's market capitalization from Rs 3 crore to Rs 4,925 crore. Investigators found that the entity used a complex web of fund rotation to create a false impression of trading volume and value. The regulator discovered that the capital was moved through multiple accounts to manipulate stock prices and mislead investors. SEBI officials stated that this method of circular trading was designed to bypass standard market surveillance mechanisms. The investigation into the specific entities involved in this manipulation is ongoing.
Why it matters
This case highlights the risks of price manipulation in smaller stocks and serves as a warning for retail investors to exercise caution with companies showing unexplained, rapid valuation growth. It reinforces the need for stricter regulatory oversight to maintain market integrity.
Read the original report — Moneycontrol
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