Securities and Exchange Board of India (SEBI) has banned 10 individuals as they were sending out fake Short Message Service (SMS) in bulk recommending people to purchase the shares of the company to pump up trading volumes in the shares of Supreme Tex Mart Ltd (STML).
According to SEBI, the SMS was sent to innocent investors into speculating market to pump up the volume of loss-making STML. The accumulated losses exceeded its entire worth as on March 2015 and were classified as a sick company.
When it all came under the scanner, SEBI conducted an investigation into trading in STML shares from July 1, 2016, to January 31, 2017, specifically pointing to bulk messages of “questionable recommendations”.
SEBI noticed, that the promoters/directors of STML offloaded more than 27 percent shares of the company adopting the mode for the month July-September 2016.
As per the order by SEBI, they hold 30.24 percent stake currently.
Source – CASANSAAR.COM