2 more penny stocks under Sebi scanner

Following its crackdown on eight companies in the last two days, the Securities and Exchange Board of India (Sebi) came down heavily on two ...

Following its crackdown on eight companies in the last two days, the Securities and Exchange Board of India (Sebi) came down heavily on two more dubious penny stocks on Friday.

It has decided to debar the promoters and directors of Konkan Tyres Ltd and Prime Property Development Corp Ltd with immediate effect following massive price manipulation in their stocks.

Sebi has also warned Ask Holding Pvt Ltd, Vinod Khetan and Sandeep Merchant to desist from engaging in any kind of irregularity relating to securities market.

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The regulator has now taken action against 10 firms. Besides, it also barred 11 stock brokers from Calcutta Stock Exchange (CSE) for ramping up the stock prices of six penny stocks. According to Sebi, of the CSE’s Rs 15 crore daily average turnover, these six stocks contributed more than 50 per cent.

KONKAN TYRES: Sebi has asked the promoters and directors not to buy, sell, pledge or deal in securities of KTL.

During the 8-years between January 1, 1997 and February 28, 2005, the share prices ranged between Re 1 and Rs 8.50. During March 1, 2005 to September 21, 2005, the share soared to Rs 18.80. This represents a rise of about 230% in 143 trading days. The company — a loan defaulter — was making losses and suspended operations in the second half the 2004 fiscal.

Prime Property Development Corp: Sebi asked the promoters and directors not to deal in its shares till further orders. Besides, brokers including India Bulls, Mansukhlal M Upadhyay, Harikishan Hiralal, Ajmera Associates and Ventura Securities were directed not to buy, sell or deal in its securities. The price moved between Rs 13 and Rs 29 till Dec. 2004. “Share price soared to Rs 53 in the first week of July 2005 and subsequently burgeoned to Rs 300 levels,” Sebi said.