Stories of price manipulation
Venkat Pharma (Rs5)
The company is supposedly into pharmaceuticals, but nobody knows what its business is really. The BSE does not make its annual reports available and the company’s website is not functional. How does the BSE expect small investors to obtain information? Venkat Pharma has been implicated by the BSE in the past for non-compliance of shareholder as well as corporate governance norms, in June 2011 and December 2011, respectively.
The company’s fundamentals are bizarre. It generated no sales at all for the past six quarters ending December 2012 and did not generate a single rupee of profit. In fact, in the past six quarters, it recorded losses in all the quarters. However, you will be shocked to learn about how its share price has moved. Despite such lousy fundamentals, the stock price rose a whopping 178% within three months (5 March 2013 to 13 June 2013), from Rs1.87 to Rs5.20. SEBI, which has spent crores of taxpayers’ rupees over the past decade on its ‘modern’ surveillance systems to catch precisely such cases, has remained shamelessly quiet. Blatant price-rigging continues unabated.