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Business News/ Opinion / Online-views/  GHCL-linked cos barred from trading after volume spike
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GHCL-linked cos barred from trading after volume spike

GHCL-linked cos barred from trading after volume spike

Hammered down: GHCL stock slumped 10% on Thursday to Rs165.15 at the close of trade on the Bombay Stock Exchange.Premium

Hammered down: GHCL stock slumped 10% on Thursday to Rs165.15 at the close of trade on the Bombay Stock Exchange.

Mumbai: India’s stock market regulator, Securities and Exchange Board of India (Sebi) barred some companies with ties to the founders of GHCL Ltd, a chemical maker, from trading shares, saying they artificially boosted volumes.

Fourteen companies and nine individuals were banned from trading in shares of Ahmedabad, Gujarat-based GHCL, Sebi said in an email statement on Wednesday.

Hammered down: GHCL stock slumped 10% on Thursday to Rs165.15 at the close of trade on the Bombay Stock Exchange.

India’s market regulator is increasing oversight as the nation’s two biggest markets sell shares to investors including Goldman Sachs Group Inc., the NYSE Group Inc. and Singapore Exchange Ltd.

The benchmark BSE Sensitive Index more than doubled in the past two years as overseas investors bought a net $18.4 billion (Rs75,440 crore) of stocks and other securities.

The regulator barred Jalco Financial Service Pvt and some directors with immediate effect while it continues its investigation, it said.

At least three companies— Antarctica Investment Pvt. Ltd, Carissa Investment Pvt. Ltd, and Comosum Investment Pvt. Ltd—barred from trading were linked to the founders of the company, the statement said.

Together, the barred companies, from 1 November, 2006 to 31 March executed trades accounting for as much as 47% of total purchases and 38% of total sales on the National Stock Exchange, it said.

“We are evaluating the order and will take appropriate action in case of any reported malfunctioning," GHCL said in the statement.

P.Sampath, a managing director at GHCL, didn’t respond to telephone calls. R.S. Jalan, also a managing director, was away from office and did not take calls.

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Published: 27 Apr 2007, 12:29 AM IST
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