ADAG stocks’ manipulation—yes; rumours?
Moneylife Digital Team 11 February 2011

While the Anil Ambani Group has already sought an investigation by SEBI, stock exchanges and investigating agencies into hammering of its companies' stocks, it said today that it has identified brokers sending mass e-mails/SMS/voice calls with baseless sensational charges against group companies

The Anil Ambani group today said it has identified the stockbrokers behind the spread of malicious rumours and "baseless sensational charges" against it and sought immediate action by the market regulator Securities and Exchange Board of India (SEBI) against the perpetrators.

The group said these brokers were sending out mass emails and SMSs and were also making large-scale voice calls with baseless and sensational charges against its firms.

Stocks of various companies belonging to the Reliance Anil Dhirubhai Ambani Group (ADAG) have fallen sharply in the past few weeks and the group has blamed corporate rivals, a cartel of stock market manipulators and 'rumour mongering' for this heavy sell-off.

While the group has already sought a probe by SEBI, stock exchanges and investigating agencies into the matter, it said in a fresh statement today that it has "identified stockbrokers sending mass e-mails/SMS/voice calls with baseless sensational charges against ADA Group."

While the group did not name the brokers in its statement, the names and other details about their suspicious activities have been submitted to SEBI.

Moneylife sources confirm that indeed some brokers were in the know of the developments in New Delhi and were hammering the stocks. However, action that may be taken by various investigating agencies against group companies is a different issue.

"These brokers (are) guilty of blatant violation of SEBI (FUTP) Regulations," the group said. These regulations relate to Fraudulent and Unfair Trade Practices (FUTP) relating to the securities market.

The group said that it was "bringing the matter to the immediate attention of SEBI/cyber crime/police for seizure of electronic and dealing room records."

It also sought a "full-fledged SEBI investigation and punitive interim orders against guilty brokers".

Stocks of ADA group firms plummeted further today after regaining some of the ground lost over the past few weeks yesterday.

The group's telecom arm, Reliance Communications, was over 4.5% down in morning trade, while Reliance Power was down over 3.4%. In addition, Reliance Infra, Reliance Broadcast, Reliance Capital and Reliance Media Works were also down over 2% each.

Hit hard by the steep decline in its stocks, the ADA group yesterday blamed 'corporate rivals' and a cartel of market manipulators for causing panic among investors.

Seeking to assuage the concerns of its over 11 million investors, the group also said it was a victim of an illegal bear cartel that destroyed over Rs3,00,000 crore in market value for the infrastructure sector in the past few weeks.

The comments came a day after the group stocks fell by up to 19%, causing a market value loss of over Rs11,000 crore in a single day on 9th February.

The group company stocks bounced back yesterday, but regained only a small part of the value that they have lost over the past few weeks.

Comments
narayan
1 decade ago
yes ADAG group of fraud people.
krishna
1 decade ago
ADAG group should be investigated if found guilty they should be banned from the market
narayan
Replied to krishna comment 1 decade ago
Agreed
Sivaram V
1 decade ago
The stock Exchanges should issue clarifications and updates whenever a stock gets hammered. I have never seen a SEBI official or NSE official give clarifications on the Television media about this kind of activities.
SURESH Athavale
1 decade ago
Hios father did same ting years back so he knows manipulating tactics. That is why he is crying. But he must know every dog has his day. at present he is at receiving end.
Mukesh Bhai
1 decade ago
The very same brokers were sending BUY Recommendations for Reliance Power IPO when it was given at rs 450..

why were u silent then ?
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