Dec 23, 07:06 AM

SEBI Suspends Trading in Bharat Global Developers Shares, Freezes ₹271.6 Crore in Illegal Profits

The Securities and Exchange Board of India (SEBI) has suspended trading in the shares of Bharat Global Developers Ltd (BGDL) due to allegations of financial misrepresentation and fraudulent activities. The suspension will remain in effect until further orders. SEBI has also barred the company's promoters from accessing capital markets indefinitely. This action follows an investigation triggered by social media posts and a complaint on December 16, 2024, highlighting suspicious financials and disclosures. The investigation revealed that BGDL's share price had surged dramatically, increasing from ₹16.14 in November 2023 to ₹1,702.95 in November 2024, a rise of 105 times. SEBI found that the company had engaged in price manipulation and offloading shares at inflated prices, with the financial statements misrepresenting the company's true state of affairs. The company reported negligible revenue, expenses, fixed assets, and cash flows until the financial year ending 2023, but showed a sharp increase in the March 2024 quarter. Additionally, SEBI has barred the company, its managing director Ashok Kumar Sewada, CEO Mohsin Shaikh, directors Dinesh Kumar Sharma and Nirali Prabhatbhai Karetha, and several preferential allottees from the securities market. The regulator has also frozen illegal profits amounting to ₹271.6 crore made by preferential allottees through the sale of shares.