Sebi Suspends Bharat Global Developers for Financial Misconduct

Markets regulator Sebi has suspended trading in Bharat Global Developers Ltd due to financial misrepresentation and price manipulation. The action follows an investigation revealing false disclosures and inflated share prices. Several company executives and shareholders are barred from the securities market.

The Securities and Exchange Board of India (Sebi) has suspended trading in Bharat Global Developers Ltd (BGDL) amidst allegations of financial misrepresentation and fraudulent activities. The regulator has taken firm action against the company and its top executives, including managing director Ashok Kumar Sewada and CEO Mohsin Shaikh.

Prompted by a dramatic surge in BGDL's share price, Sebi launched an investigation, uncovering false disclosures and price manipulation schemes. The inquiry revealed about Rs 271.6 crore in illegal profits made by a select group of preferential allottees through manipulated share sales.

The regulator's interim order has frozen these profits and barred the company and key individuals from engaging in the securities market, effectively halting further exploitative trading practices. The company had painted an inaccurate picture of success to inflate its market cap without any substantial backing.

(With inputs from agencies.)