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Sebi had passed an interim order after investigation into the manipulation of five scrips, and had found Econo Trade closely associated with a person identified as the “kingpin” of the operation
The five companies referenced in the order are Mauria Udyog Ltd., 7NR Retail Ltd., Darjeeling Ropeway Company Ltd., GBL Industries Ltd. and Vishal Fabrics Ltd.
The modus operandi followed apparently under a pre-planned scheme by the entities mainly centered around circulation of bulk SMSs in five scrips with a 'Buy' recommendation to public investors.
SEBI has time and again cautioned investors to be aware of fraudulent activities which are being carried out through SMSs, various websites and social media. It has also advised investors to deal only with registered intermediaries.
Taking stern action against stock manipulation in scrips of Mauria Udyog Ltd, 7NR Retail Ltd, Darjeeling Ropeway Company Ltd, GBL Industries Ltd and Vishal Fabrics Ltd through bulk SMS, Securities Exchange of Board of India (SEBI) has barred 135 entities from markets. At the same time, the market regulator has issued show cause notices to 226 entities, including numerous mule accounts.