Sumeet Industries tumbles down
Sumeet Industries has tumbled down deep into the red today morning, currently down almost 8.5% at Rs.16, with an intra day low at Rs.15.70. The 52-week low stands at Rs.13.75.
The stock has fallen, reacting to SEBI barring the company and 14 other entities, including company's chairman, promoters and directors, from capital market for up to three years. SEBI has also directed them to disgorge wrongful gains made by them through stock manipulation in 2007.
The company has been restrained from dealing in the securities market for two years, its chairman Shankar Somani, MD Rajkumar Somani have been barred for a period of three years. Additionally, SEBI has prohibited company's three directors, five promoters and four other individuals from the capital market.
The unlawful gains amounting to about Rs 5 crore has to be made within 45 days failing which a further restraint of 5 years from capital markets would be imposed.
The company and its management have been barred by SEBI following its findings that the company had made misleading announcement, with reference to its preferential issue, JV with Vishvas Infrastructure, and scheme of amalgamation, to influence the price of the firm's shares so that the entities could reduce their holdings in Sumeet at a profitable price. This probe by SEBI was carried out for the period between 1st Oct 2006 to 12th March 2007’ the probe was pertaining to suspected price rise and volume manipulation.