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Penny stocks? Beware, says Sebi
BS Bureau in Kolkata | September 09, 2005 11:12 IST
The Securities and Exchange Board of India has got evidence of a few cases of market manipulation in illiquid and penny stocks in the ongoing bull run.
Pointing to the abnormal movement in illiquid stocks, Sebi Chairman M Damodaran said here on Thursday the regulator was trying to find out why a few stocks with no trading record suddenly started going up with a scorching pace.
"We are examining whether there is any manipulation or unethical practices involved in these recent movements," he said while addressing a seminar on capital markets organised by the Indian Chamber of Commerce. Later, he indicated that in 2-3 cases, the Sebi got some leads on manipulation.
Sebi, he said, has started putting such stocks in the trade to trade segment and is imposing 100 per cent margins for them as a corrective measure.