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Another Indian Stock Market Scandal Erupts as Realty Firm Ackruti City and Broker Dangi get Banned for Rigging Share Prices

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I have repeatedly highlighted the stock market shenanigans in the Indian Stock Market through pump and dump microcap IPOs.This can be easily verified from the poor stock performance after listing of many of the Junk IPOs . Commercial Body and Engineers which was highlighted as a super expensive badly managed company has cratered after its IPO.The company said that its performance had massively deteriorated in  the last 6 months.Good thing it managed to lure gullible investors into investing in September.There are numerous other cases where shady promoters,stock market operators and merchant/investment bankers collude to rig and sucker investors.

India’s Stock Market Regulator has been hardly proactive in cracking down on stock market manipulation except for some inefficient scolding.It has banned some companies and a stock market operator for artificially rigging up stock prices through a nefarious scheme so that the stock could placed  through QIBs at higher prices.Recently GMO,Goldman,Morgan and Fidelity got conned by a  fly by night Indian financier who managed to place $100 million of his company’s shares a hugely inflated price.A cursory due diligence by these high flying financial institutions would have shown his business model to a sham.Realty Investing in India is always a dangerous game with real estate firms involved in all sorts of corruption scandals.Akruti City whose  shares had seen a massive rise some months ago has been implicated by SEBI for  rigging up its share price with the help of a “stock market operator” Dangi.Some other firms like Murli Industries,Welspun Corp have been found to be part of this corruption game as well.Note SEBI has not done much except banning these firms.I would have though that these white collar crimes should be punished more stringently.Banning some entities without any jail time will lead to more and more of these stock rigging in the future.

Welspun shares down 27 pct on SEBI ban – IE

Market regulator SEBI’s decision to bar four companies, including USD 3 bn worth Welspun Corp, from trading due to their unfair trading practices, dragged their share down, with the latter falling by 27 per cent in the early trade on BSE.

On Thursday, SEBI had barred Murli Industries, Ackruti City, Welspun Gujarat Stahl Rohren Ltd (now Welspun Corp Ltd), Brushman India and their respective promoters from trading on the bourses for allegedly indulging in unfair trading practices.

Reacting to the news, Welspun Corp scrip nosedived by 26.97 per cent to hit an-yearly low of Rs 160 on the Bombay Stock Exchange.
Similarly, the real estate firm Ackruti City tumbled by 19.99 per cent to a record low of Rs 307.90, hitting a lower circuit on BSE. Cement firm Murli Industries saw a steep decline of 19.99 per cent

Sebi bans 4 cos, 3 broking firms – TOI

The Sebi on Thursday passed strictures on four listed companies—Murli Inds, Ackruti City, Welspun-Gujarat Stahl Rohren and Brushmanthree broking firms, market operator Sanjay Dangi and other related entities for their role in market manipulation of these stocks spanning several years.

The Sebi order was the result of a detailed investigation into the activities of these groups which had its origin in a reference from the income-tax department in Nagpur.

Apart from the four listed companies, Sebi banned 10 entities belonging to the Sanjay Dangi Group, 14 Ashika Group companies, 18 entities from the Murli Industries Group, 13 Ackruti City entities, six Welspun Group entities and one from the Brushman Group from dealing in shares of their company or group entities.


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

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