The shares of four companies - Murli Inds, Ackruti City, Welspun Corp and Brushmanthree are down 12%– 17% each on the bourses after the capital market regulator the Securities and Exchange Board of India (SEBI) banned the promoter of these companies, market operator Sanjay Dangi and other related entities for their role in market manipulation of these stocks spanning several years.
"The Sebi order was the result of a detailed investigation into the activities of these groups which had its origin in a reference from the income-tax department in Nagpur," according to reports.
Sebi also reportedly said that the four companies—Murli Inds, Ackruti City, Welspun Corp and Brushman—had raised funds through qualified institutional placements (QIPs) or foreign currency convertible bonds between 2007 and 2009.
Among the individual stocks – Welspun Corp has slumped 17%, Murli Industries (down 16%) and Ackruti City (down 15%) on the Bombay Stock Exchange (BSE).
