A stock that has given an incredible return of 8006% in the last 2 years. Last year it gave a return of 2619% and has increased by 2133.38% in 2024. Now SEBI has taken major action on this stock.
In fact, shares of Bharat Global Developers Ltd have been suspended for trading on the exchanges till further orders, as stated by the market regulator Securities and Exchange Board of India (SEBI) in its order. The market regulator has also barred the company’s promoters from accessing the capital markets until further orders.
In its order, SEBI said it took cognizance of social media posts and complaints dated December 16, 2024, which were related to questionable financial results and disclosures. Bharat Global shares gained 105x from November 2023 to 2024.
The SEBI order said Bharat Global’s revenues, expenses, fixed assets and cash flows till fiscal year 2023 were extremely low and the financial results for the quarter ending March 2024 showed a sudden increase in revenues and expenses.
Following a management restructuring in December 2023, the company witnessed expansion in its business, securing a larger commercial allotment and entering into higher value deals. The company set up 6 new branches on October 30, 2024, a day before the lock-in period of the primary shares expired.
SEBI wrote in its order that the company was inducing investors to buy its shares on the basis of false disclosures, as well as trying to mislead and induce investors with false and fabricated orders and orders.
The rise in Bharat Global’s shares was a result of misdisclosures and misrepresentation of financial results and the rise in share price occurred at a time when it was done to benefit certain professional allottees.
As per SEBI order
Trading will remain suspended until further orders.
Some notice recipients are prevented from transacting in the securities or capital markets.
The alleged illegal gains made by some of the notice recipients have been seized.
Instructions have been given to those banks where the notice recipients have accounts not to make any debits.
All notice recipients have been ordered to submit a complete list of all their properties within 15 days.
Recipients of the notice cannot transact in the shares of Bharat Global Developers.
Disclaimer: This information is for informational purposes only and should not be construed as investment advice. It is recommended to consult a financial advisor before making investment decisions.