HC asks SEBI to probe rigging in BPL, Videocon

MUMBAI, June 30: The Mumbai High Court has directed Securities and Exchange Board of India (SEBI) to probe on a warfooting alleged rigging i...

MUMBAI, June 30: The Mumbai High Court has directed Securities and Exchange Board of India (SEBI) to probe on a warfooting alleged rigging in prices of shares belonging to BPL and Videocon International Ltd.

Hearing a petition, a division bench headed by justice S N Variava observed yesterday that SEBI should be vigilant so that investors were not cheated by manipulators.

The petitioner, Jasmin Shah, alleged that instead of taking any drastic steps SEBI and Bombay Stock Exchange (BSE) had reduced margin money from 20 per cent to ten per cent. If SEBI was looking

into the matter then it should not have allowed BSE to `pay out’, his counsel, M M Sashi contended.

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SEBI’s counsel, Kumar Desai, submitted that the matter was under investigation and sought three months time to file a report. The judges, however, directed SEBI to complete the probe within a month and forward a report to the court.

The petitioner said the price of shares of BPL and Videocon International were Rs 78 and Rs 23 respectively inFebruary last. However, due to rigging prices were allegedly jacked up to Rs 178 (BPL) and Rs 174 (Videocon) last month.