Sleepless nights are in the offing for those indulging in insider
trading. The Securities and Exchange
Board of India (Sebi) intends to do justice to investors as it has
shortlisted 60 scrips for carrying out a detailed investigation
into the cases of price manipulation and insider trading.
directed by the joint parliamentary committee, Sebi had
scrutinised 200 shares suspected to have indulged in insider
trading and price manipulation, out of which it had shortlisted
60. The list also includes names of those multinational companies,
which in the last six months or so have announced buy-back of
It is an
impressive list, with big names in the corporate world - Ranbaxy,
Carrier Aircon, VSNL, Baja Auto, Pentamedia Graphics, Lupin
Laboratories, Otis Elevators, Global Telesystems, ICICI Bank,
Wartsila India and Polaris - figuring in it. The others include
Jaiprakash Industries, VST Industries, Hinduja TMT, Flex
Industries, Great Eastern Shipping, American Remedies, PSI Data
Systems, Jindal Iron & Steel Company, Global Trust Bank, Shyam
Telecom and Jagsonpal Pharma.
clear that Sebi is bent upon investigating price movements of
shares of companies, which were involved in mergers and
acquisitions. Some such cases are:
1) ICICI Bank, which had acquired Bank of Madura.
2) The sparsely traded Bank of Madura scrip, which had attracted
huge volumes and had moved up to cross the Rs 150-mark before its
merger with ICICI Bank.
The acquisition of American Remedies by Dr Reddys Laboratories.
Indian Rayons acquisition of PSI Data System, whose scrip had
zoomed up to cross the Rs 150-mark from sub-100 levels in a period
when the entire IT stocks were taking a severe bear hammering.