Stories of Price Manipulation
Omni Ax’s Software (Rs2)
Omni Ax’s Software is listed on the Bombay Stock Exchange (BSE). Omni’s annual report for 2012 claims that it is engaged in developing computer software. There is no mention of the 
kind of software being developed nor who its clients are. Revenues for FY11-12 were reported as Rs56 lakh and expenses for the purchase of software are as high as Rs55.90 lakh, i.e., 93% of the total revenues. A similar figure was reported for the previous financial year. Are these numbers genuine? After all, for three consecutive quarters, ended December 2011, March 2012 and June 2012, Omni reported negligible sales. It was suspended by the BSE from 19 March 2013 to 28 March 2013 for not complying with the listing agreement. Omni has even invested Rs4.85 crore in two unlisted companies. The share price of the company shot up by as much as 175% in two months—from Rs0.71 on 7 June 2013 to Rs1.95 on 5th August. The stock price of another company, Eduexel Infotainment Ltd, with the same registered address and common director—Rajendra Jain—has more than doubled—from Rs4.66 in mid-April 2013 to Rs9.94 at the beginning of August 2013. Any expectations from the BSE or SEBI?
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
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