NEW DELHI: Some penny stocks or low-priced stocks scaled new highs or went up in straight trading sessions this week in an otherwise volatile broader market.
Innumerable counters are moving up without logic, many defying fundamentals and eluding the eyes of the regulator and the exchanges. It remains regulator SEBI and the exchanges incumbent duty to retain oversight through stringent surveillance and scrutiny mechanisms.
Sadly, this doesn't seem to be happening, for the old adage of a ‘rising tide lifting all boats' seems to be the underlying credo for this unidirectional rise. This is where SEBI needs to be in action mode in order to sift the wheat from the chaff. This process of winnowing is crucial to curtail the needless froth driven to the top by operators and punters, who are clearly in some cases working in collusion with some of these companies.
IANS undertook an investigation into some of these counters and listed them out so that the regulator and exchanges swing in to cut the fat and bring a semblance of order in the equity markets. And this remains a recurring theme right through the robust bull market, counters hitting upper circuit filters, and common retail investors being denied the opportunity to purchase many of these penny stocks.
It is this collusion between operators fronting for certain promoters which is creating this distortionary trend in the market. Many market analysts maintain that this emergent trend line may well be part of a circular trading operation where a cabal of operators resort to pump and dump.
Pump and dump is a well-known system of price rigging and manipulation when identical buy and sell orders are entered at the same time with the same number of shares and the same price. Try buying one of these shares at precisely 9.15 am and one will find that it has already hit the upper or lower circuit for the day. This is being done in a brazen manner in complete contravention of SEBI and exchange rules and regulations.
In the last 18 months since the onset of Covid 1, markets have moved up dramatically from 24, 000-odd levels to close to 62, 000 on the BSE Sensex and many penny stocks have seen this operation undertaken without so much as by your leave.
It is probably time for the nodal authority in North Block -- Joint Secretary Capital Markets in Finance Ministry -- to begin a probe into price rigging and manipulation, which is being done shamelessly right under the noses of the regulatory authorities.
The latest lot of those who appear to be cocking a snook are Jet Freight Logistics which hit a 52-week high of Rs 62.45 on BSE on January 7, up 4.96 per cent. It has been rising consistently in the last few trading sessions. On January 3, it was at Rs 49.95 and ended January 7 at Rs 62.45. It needs to be mentioned that all these companies listed here may not necessarily be involved in pump and dump schemes, but circumstantial and prima facie deep dive has clearly revealed a pattern of malafide as counters are being propped up using news driven data points.
SEBI has in the past turned to big data to crack many such cases, but it needs to do this with greater alacrity. On December 31, it rejigged its market data advisory panel. It needs to go beyond the pale and bare its fangs and stop this abomination in its tracks.
United Polyfab on the NSE was locked in the upper circuit on January 7 at Rs 22.10, up by 4.99 per cent. It also hit a 52-week high at Rs 22.10. It has risen consistently since December 31 when it was at Rs 17.35 and went up to Rs 22.10 on January 7.
STL Global on BSE closed on Friday at Rs 29.65, up by 4.96 per cent, its 52-week high. The stock has doubled in the last one month. It was at Rs 15.55 on December 7. It has gone up in the last few sessions. On January 3, it was at Rs 25.2.
Balkrishna Paper Mills also hit a 52-week high on Friday at Rs 45.85, up by 4.91 per cent. On January 3, the stock was at Rs 37.95. On December 7, it was at Rs 25.05.
Shivam Autotech hit a 52-week high on Friday at Rs 40.75, up by 4.89 per cent. The stock was at Rs 25.97 on December 7. On January 3, it was at Rs 33.6.
Ind-Swift Ltd is also close to its 52-week high and closed up 4.99 per cent up at Rs 16.21 per cent. On January, the stock was at Rs 13.
Anik Industries was at a 52-week high on Friday at Rs 34.40, up 4.88 per cent. It was at Rs 28.2 on January 3 and Rs 20.7 on December 7.
SPML also hit a 52-week high on BSE at Rs 35.05, up by 4.94 per cent. It was Rs 28.95 on January 3 and has been rising consistently.
A2Z Infra on the BSE hit a 52-week high at Rs 12.07, up by 4.96 per cent. On January 3, it was at Rs 10.01 and Rs 6.54 a month back and has doubled in a month's time.
Beardsell Limited is at a 52-week high on BSE of Rs 17.65, up by 5 per cent. It was Rs 11.39 on December 7 and Rs 14.53 on January 3.
Visa Steel was at a 52-week high at Rs 18.60, up by 4.79 per cent on January 7. Tijaria Polypipes also on the same day hit a 52-week high of Rs 10.98, up by 4.97 per cent. It was Rs 9.14 on January 3.
On BSE, Surana Telecom hit a 52-week high on BSE on Friday at Rs 13.49, up by 4.98 per cent. It was Rs 11.11 on January 3.
Transwarranty Finance was at a 52-week high at Rs 10.38, up by 4.95 per cent. It was Rs 8.56 on January 3.
Another low-priced stock, Inventure Growth Securities also was at a 52-week high on Friday at Rs 5.85, up by 4.84 per cent. It was at Rs 3.69 on January 3.
Vikas Ecotech at Rs 3.82 hit a 52-week high, up by 4.95 per cent. It was Rs 3.16 on January 3.
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