Stock manipulation: Aviva Industries
Moneylife Digital Team 28 October 2015
Aviva Industries company has no business, no income; yet its share price has shot up 194%
 

Aviva Industries (earlier known as Ankush Synthetic) was trading in chemicals. Over the past few years, Aviva has not done any business; hence, there is no income. With no income, Aviva reported a net loss of Rs4 lakh for the year ended June 2015. 
 
Over the past 15 months, trading in Aviva has been highly suspicious. From its low of Rs8.68 in February 2014, in just about seven months, the stock price shot up 343% to Rs38.45 on 19 September 2014. In the seven months that followed, the stock price crashed by 67.85% to Rs12.36 on 23 April 2015. This was not the end. The stock staged another steep rally, of 144%, before dipping by 30%. The price is up by 194%, at Rs25.50, on 7 October 2015 from Rs8.68 on 17 February 2014.
 
In 2010, the Security and Exchange Board of India (SEBI) had imposed a penalty of only Rs2 lakh on Aviva Industries for trading while in possession of unpublished price sensitive information in the scrip of Nova Petrochemicals in 2006. Will SEBI investigate this suspicious trading activity in a company which has only 626 shareholders and which has been involved in insider trading in the past?
Comments
Joginder Pal Kanaujia
6 years ago
There are many such scrips which are shooting up without any business e.g Dynacons Technologies CMP Rs 22.40 trading at PE ratio of whopping 2240. There is no end to list of such scrips.
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