Stock manipulation: Vishvjyoti Trading

Vishvjyoti Trading rose 6259% in a year and half

 

Vishvjyoti Trading (Vishvjyoti) has a ‘diversified trading business’. Apart from ‘trading in textile yarns’, it also trades in shares and securities. The promoter’s stake was just 1.05% as on 30 September 2014 down from 65.28% in September 2012. But the price has been moving up by 2%-5% every single trading day from June 2013 to March 2014, with just about one trade a day. From March, trading volume increased to approximately 100 trades a day. Its financials have played no role in the price spurt. With a revenue of about Rs55 crore, the company has reported a profit of Rs3.29 crore. The stock price is a shocking 115 times the earnings per share. With just 143 individual shareholders, the stock price has shot up by 64 times or 6,259% to Rs24.80 as on 22 December 2014 from an adjusted price of Rs0.39 as on 3 June 2013. Vishvjyoti has been suspended in the past for not complying with the listing agreement by the BSE. While SEBI talks a lot about controlling market manipulation, it actually does little about it.

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Stock manipulation: Odyssey Technologies

Odyssey’s stock price has shot up 1443% in a little over a year. Where is SEBI?

 

Odyssey Technologies claims to operate in the information security industry with a focus on public key infrastructure (PKI) for payment systems in India. The company’s latest annual report mentions that its main customers are from the banking & finance sector and the rest include government and defence agencies. Around 70% of Odyssey’s revenue reportedly derived from product-related services and a little less than 28% comes from product licences implementing PKI. But Odyssey has recorded sales of only Rs1 crore-Rs2 crore each quarter since March 2011. However, such is the ease with which manipulators operate in the market that, in about a year, the company’s share price shot up by 1,443%, or 15 times, to Rs39.05 on 9 December 2014 from Rs2.53 on 8 October 2013. To put it in perspective, an investment of Rs1 lakh would now be worth approximately Rs15 lakh. In as many as 128 of the past 270 trading days, the stock has closed with a gain of 2% or more. As usual, this will go unnoticed by the regulators.

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Stock manipulation: Exdon Trading Co

Exdon Trading Company Limited has risen 6587% in a little over a year.

 

Exdon Trading Company Limited (ETCL) deals with shares, securities, debentures and other investments in India. Over the past few years, according to ETCL’s management, it has not been in a position to generate any revenue from operations. Surprisingly, without any revenue from operations and several quarters of continuous loss, the stock price of ETCL has risen over the past one year; it increased by 2% each day that it has traded, with just about two trades a day. As the chart shows, it is a smooth curve upwards. Over the past one year, the price has increased by 6,587%, or 67 times, to hit Rs296.25 on 28 November 2014 from Rs4.43 on 3 October 2013. The stock clearly stinks of manipulation which could have easily been curbed had our regulators been alert. In 2008, ETCL was fined for non-disclosure of shareholding pattern and, in 2010, it was involved with insider trading activities but was let off by the regulator after it paid a fine of Rs12 lakh through a consent order.

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COMMENTS

PRASAD VVN

4 years ago

It is time that regulators needs to formulate a system to control this type of activities which will protect small investor.

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