India Infoline has written to the Securities and Exchange Board of India to investigate the trading pattern of its equity shares. The domestic brokerage has been in news for alleged tax raids by various enforcement agencies. Its shares have been in a free fall of late.
“In these circumstances, we are also requesting the regulator, through a separate letter, to investigate the trading in cash and derivatives segment in our stock in the recent past against any fraudulent and manipulative acts,” India Infoline told stock exchanges.
The market has been abuzz with talks that enforcement agencies, including the income-tax department, have raided the offices of the domestic brokerage.
On Wednesday, the company’s shares dropped 1.50 per cent to close at Rs 65.75. The shares have lost more than 20 per cent since the beginning of the calendar year. On Tuesday (February 8), the stock touched a new 52-week low of Rs 62.85.
“We wish to clarify that there have been no raids, searches or surveys in any of our offices or with any of our people. These rumors are false and baseless,” it said.
“We suspect these rumors are being spread by certain vested interests with a malicious intent to cause undue volatility in our share price. We are sending this communication to the exchanges as an alert. In the recent past, there have been baseless rumours about some key people leaving our company. We are frequently questioned by media, our clients, shareholders and other people to clarify the same,” it added.