Delhi: Market regulator Sebi on Monday suspended trading in Bharat Global Developers Ltd (BGDL) over financial misstatements, misleading disclosures, price manipulation and selling of shares at inflated prices. Besides, the regulator has barred the company, its managing director Ashok Kumar Sewada, CEO Mohsin Shaikh and directors – Dinesh Kumar Sharma and Nirali Prabhatbhai Karetha – and several allottees of preference shares among the 18 entities from the securities market. Besides this, SEBI in its interim order has frozen illegal profits of Rs 271.6 crore earned by preferential allottees through sale of shares.
This happened after the Securities and Exchange Board of India (SEBI) initiated a probe against Bharat Global Developers following social media posts and a complaint on December 16, 2024. The investigation was triggered by the dramatic 105-fold increase in BGDL's share price, from Rs 16.14 in November 2023 to Rs 1,702.95 in November 2024. The regulator investigated the matter to determine whether the company violated securities laws, including the SEBI Act, Prohibition of Fraudulent and Unfair Trading Practices (PFUTP) Regulations, and Listing Obligations and Disclosure Requirements (LODR) Regulations .
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