Sebi bars Indiabulls, Fortis from trading in Karuna shares

The Securities and Exchange Board of India today banned Indiabulls Securities and Fortis Securities among others from dealing in the shares of Karuna Cables.

The capital market watchdog also banned the promoters of Karuna Cables from dealing in its own shares, citing price rigging as reason. The other stock brokers who are banned from the dealing in the shares are Galaxy Broking, Accord Capital Markets, B Lodha Securities, CSL Stock Broking and SVS Securities.

Sebi noted that the share price of Karuna Cables witnessed sharp variation during the period between February10 and September 16, 2005.

The share price went up from Rs22.40 on February 10 to Rs159.50 on September16,2005 a rise of 636 per cent in 153 trading days. The price has since fallen to Rs4.58 as of November29.

The Sebi release noted that its findings indicated a "careful designing and orchestrated execution of a plan by promoters to make personal gains at the expense of investors by enticing them to participate in the trading of the shares and with a view to offload their own holdings."

The company's management has also been accused of making wrong and misleading disclosure of promoters' holding in the company toBSE.