Asahi Construction and Housing Finance Ltd. has come under regulator Securities & Exchange Board of India (Sebi) glare.
The stock has rocketed 2700 per cent in past three months on the Bombay Stock Exchange (BSE) from a low of Rs 1.10 on 20 June to Rs 29.70 today.
Sebi chairman D R Mehta said, "A formal investigation has been initiated and we have sought details from the stock exchanges including the trading details of last three months."
Even the volumes in the stock has jumped up during this period. The volume in the stock trading on the BSE which ranged between 25-2,500 shares has witnessed a sharp increase to 2,000-15,000 shares in October.
The Sebi probe was initiated on complain filed by various investors who also complained regarding non-transfer of shares lodged by them with the company when it went into compulsory demat trading. investors have complained that large chunk of the lodged for transfer are being cornered by the promoters.
The share trading of Asahi Construction went into compulsory demat mode from July beginning and the price of the shares has since started spiralling upwards.
The investors fear that by blocking transfer of shares into demat, there could be a ploy to increase the share price artificially by reducing the floating stock in the market.
