After all the criticism about being an inefficient regulator and partly blamed for the failure of the IPO market, Sebi has now saddled up the horse and set out on hunt. In its biggest crackdown in five years since the NDSL scam, the regulator today cracked its whip on seven companies that had undertaken IPOs recently. They include: Taksheel Solutions, RDB Rasayans, Onelife Cap, Brooks Labs, Tijaria Polypipes, Bharatiya Global and PG Electroplast.
While the NSDL case was about how the DEMATs were used to manipulate IPO market and allotment there, this scam is primarily linked to the involvement of the promoters, the bankers and the market intermediaries in how they demand for an IPO, and then on listing, how they manipulate the prices to take it higher. They then suddenly sell off in the market leading to a sudden crash in the prices, reports CNBC-TV18
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