Bharat Global Developers shares—which rose 2,100% this year—suspended by SEBI
What's the story
The Securities and Exchange Board of India (SEBI) has suspended the trading of Bharat Global Developers Ltd. shares on all exchanges until further notice. In its order, the market regulator noted social media posts and complaints dated December 16, 2024, highlighting suspicious financials and disclosures. Bharat Global's shares skyrocketed by 105 times between November 2023 and November 2024. In 2024 alone, the shares have gained a whopping 2,122%, with trading halted at ₹1,236.45 apiece.
Share surge
Bharat Global's share price up by 2,304% since December 2023
Bharat Global Developers's share price saw an unbelievable surge of 2,304% from ₹51.43 per share on December 26, 2023, to ₹1,236.45 as of December 23, 2024. This came after a period of almost no revenue and expenses till the financial year ending March 2023. However, the company's financial results for the quarter ending March 2024 indicated a steep rise in both revenue and expenses.
Allegations
SEBI alleges false disclosures by Bharat Global
SEBI has accused Bharat Global Developers of trying to lure investors into buying its shares through false disclosures. The regulator also alleged that the company used fake and fabricated orders and contracts to mislead investors. The surge in Bharat Global's shares was due to incorrect disclosures and misrepresented financials, timed strategically to favor certain preferential allottees, SEBI said.
Regulatory action
SEBI imposes restrictions on Bharat Global's promoters
Along with suspending trading, SEBI has also barred Bharat Global Developers's promoters from accessing capital markets until further orders are passed. The regulator has impounded any alleged illegal gains made by certain individuals and directed banks where these individuals have accounts to prevent any debits. All those involved have been ordered to provide a complete inventory of their assets within 15 days and barred from dealing in shares of Bharat Global Developers.