SEBI takes action against Supreme Tax Mart promoters indulging in jacking up stock prices

There is a Securities and Exchange Board of India (SEBI) action on promoters who indulge in jacking up share prices by sending SMSs. The order has come against promoters of Supreme Tax Mart. The promoters have been indulging in practice of sending SMSs in bulk asking investors to buy the company shares.  Zee Business' Brajesh Kumar brings this report.

Kumar said that Supreme Tax Mart is the company where an action has been taken. It falls under the category of penny stocks. The promoters of this company made deals with various companies to send 2-6 cr mesages to investors, SEBI found in its investigation. 

At the time when SEBI found this, the stock was trading around Rs 3 and the traget of Rs 5 was given and it was said that the target will go up further.

This was happening despite company facing financial problems. It was seen that the volume of the stocks also went up significantly around this time.     

- SEBI in its investigation found that the accused have benefited by Rs 14 cr 

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- The market regulator has ordered the company to deposit all the money earned by the company through this illegal means.

- The investigation found 11 people indulging in this activity and has banned them from operating for six years.  

- SEBI conducted an investigation on the trades for the period between July-October 2016. 

- The accused asked investors to buy there share and then sold these shares themselves. 

- The company sent 4.14 cr SMSs to ensure prices go up.  

- The number of investors went up during the period SMSs were sent.

- According to SEBI the promoter group company sent the SMSs.

Zee Business Managing Editor Anil Singhvi said that actions have been taken previously by the market regulator.

The company has been facing financial problems and despite that trading volumes of stocks went up.