SEBI probing steel share price movements of six companies
By Our Markets Bureau | 22 Aug 2003
Mumbai:
The Securities and Exchange Board of India (SEBI) has
launched an investigation into the "unusual"
price movement of shares of about half dozen steel companies,
including that of Steel Authority of India Ltd (SAIL),
over the past few days.
According to sources, the regulator has asked stock exchanges to find out whether any of these companies or its officials has violated listing agreements and whether there was concentrated trading in the shares.
SEBI board member T M Nagarajan says the regulator is keeping a close watch on the market movements but cautions against irrational exuberance. "In the context of sharp and swift movement on the stock market, SEBI is keeping a close watch over price-sensitive statements being made by company officials in the electronic and other media. Any violation of listing agreements or price manipulation will be severely dealt with in the larger interest of market integrity. Small investors should be careful and not get carried away by hype and exuberance."
The
sources, however, said the exchanges will examine certain
public statements made by top officials of the steel companies
that hint at positive developments in their respective
companies and industry in general. "They will check
whether these statements were price-sensitive in nature
and whether the information was given to the exchanges."
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