Do you like this stock?
If the word “manipulation” comes to mind, then you’re probably bang on target. SEBI found that this stock was manipulated by upto 152 entities!
In an interim order, they’ve dinged all the persons involved. The stock was manipulated, SEBI says, in a complex roundabout manner:
The company had no real operations, and no useful financials, so it was just a conduit for generating these gains – and the whole game smells like a black money conversion scheme.
This kind of thing has been happening big time in many places, and only Moneylife has been exposing many such schemes. They have an entire section on such manipulation!
The point is: All our black money isn’t black because it is being used by such entities to convert to “white”, tax-free money since long term capital gains are not taxed. The most important thing is now:
If authorities do this, we might see such activities stop. Otherwise this will continue, in the Bombay lingo, “bindaas”. (Without fear of retribution)
Such scumbags will not be fought by the political torch bearers of anti corruption either, whose only targets are big industrialists. But the dirtiest of the lot are such wheeler dealers, and unless they are brought to justice, we’ll never see the end of corruption and stock manipulation.
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