Shares of Bharat Global Developers Ltd. have been suspended from trading on the exchanges till further notice, as per the latest order from market regulator Securities and Exchange Board of India (SEBI).
The market regulator has also banned the company’s promoters from accessing capital markets till further orders.
In its order, SEBI said that it took note of social media posts and complaints dated December 16, 2024, which pertained to suspicious financials and disclosures.
Shares of Bharat Global surged 105x during the period of November 2023 and 2024.
SEBI’s order states that until financial year 2023, Bharat Global had negligible revenue, expenses, fixed assets and cash flow. However, the financial results from the March 2024-ended quarter showed a steep spike in revenue and expenses.
Post a management overhaul in December 2023, the company saw expansion in its business, a sizeable preferential allotment, and high value deals.
The company then set up six new arms on October 30, 2024, one day before the lock-in period of preferential shares ended.
SEBI wrote in its order that the company was trying to induce investors to buy its shares based on false disclosures, along with fake and fabricated orders and contracts to mislead and induce investors.
The rise in shares of Bharat Global was a result of wrong disclosures and misrepresented financials and the price rise in shares was timed to benefit certain preferential allottees.
As per the SEBI Order:
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- Trading in the scrip is suspended till further orders
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- Certain noticees restrained from dealing in securities or accessing the capital markets.
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- Alleged unlawful gains made by certain noticees are impounded.
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- Banks where noticees hold their accounts directed to ensure no debits are made
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- All notices to submit a full inventory of their assets within 15 days
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- Noticees cannot deal in shares of Bharat Global Devlopers.
Content retrieved from: https://www.cnbctv18.com/market/bharat-global-developers-shares-suspended-for-trading-by-sebi-bonus-stock-split-financials-19528215.htm.
