Sebi Suspends Trading In BGDL

New Delhi: Markets regulator Sebi on Monday suspended trading in Bharat Global Developers Ltd (BGDL) for financial misrepresentation, misleading disclosures, price manipulation, and offloading shares at inflated prices.Additionally, the regulator has barred the company, its managing director Ashok Kumar Sewada, CEO Mohsin Shaikh and directors --Dinesh Kumar Sharma and Nirali PrabhatbhaiKaretha -- and several preferential allottees of shares among the 18 entities from the securities market. Also, Sebi, in its interim order, has frozen illegal profits to the tune of Rs 271.6 crore made by preferential allottees through the sale of shares.

This came after the Securities and Exchange Board of India (Sebi) initiated an investigation into Bharat Global Developers following social media posts and a complaint on December 16, 2024. The inquiry was triggered by a dramatic 105-fold increase in BGDL’s share price, which surged from Rs 16.14 in November 2023 to Rs 1,702.95 in November 2024. The regulator examined the matter to determine whether the company violated securities laws, including the Sebi Act, Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations, and Listing Obligations and Disclosure Requirements (LODR) Regulations.