SEBI Barred Four Companies for Stock Rigging

The Securities & Exchange Board of India (SEBI) on 2 December 2010 barred the promoter groups of Murli Industries, Ackruti City, Welspun Corporation and Brushman India from dealing in their shares till further notice. The concerned companies were found guilty of colluding with share trader Sanjay Dangi and his associates, and the Ashika Group in rigging the stock price of their respective companies. The SEBI investigation unearthed a nexus between some mid-cap companies and stock market operators who rigged the share prices of these firms ahead of convertible bond issues and private placements to institutional investors. SEBI advised the stock exchanges to enable squaring off the derivative positions of all these entities (Murli Industries, Ackruti City, Welspun Corporation and Brushman India). The companies with the exception of Welspun are not eligible for derivatives trading.