Sebi Launches Probe Into Tech Stock Spurt

The Securities and Exchange Board of India (Sebi) today launched a investigation to probe the unusual scrip movements of infotech counters such as Himachal Futuristic (HFCL), Global Tele-Systems and Infosys Technologies.

Stocks of HFCL have surged by more than 200 per cent in the last two months, while those of Global Tele-Systems improved from Rs 48 per share to Rs 110 in just 40 days.

Stocks of Infosys Technologies also gained more than 60 per cent between September 21 and today. Sebi sources said the decision to scrutinise the price movements was taken after these stocks displayed a sharp rise during the last two months.

 

Sources also said that off late there have been rumours that broker Ketan Parekh is back in business. The Sebi scrutiny may have been ordered to check the veracity of this gossip, they explained.

In fact, a number of B2 group scrips are also being scrutinised by the markets regulator, as some of them have been touching the upper end of their circuit filters ever since the market has been on the recovery path.

There are also talks that the exchanges are considering the option to bring some of the more volatile scrips under the trade-to-trade settlement.

HFCL, which had struck a 52-week low of Rs 24.90 in mid-September this year, closed at Rs 82.75 last week. Today the scrip touched an intra-day high of Rs 93.25, before closing 8 per cent higher at Rs 89.65.

Heavy bear hammering of these tech stocks first came under the Sebi glare during the market crisis in March this year.

Infosys today straightaway touched the 10 per cent filter and led the early gains in the market. However, reports from the company stating that it expected to meet third quarter profit projections could have helped propel the upward journey of the scrip.