The market regulator, Securities and Exchange Board of India, is currently investigating a number of pump and dump schemes involving revivals of defunct BSE companies operated from Ahmedabad and duping around 4000 investors, according to people familiar with the matter.
The people quoted above further mentioned that the regulator is keen on expediting the investigation and is planning on coming out with an order in the next three to six months.
The scheme was being orchestrated through a network of shell companies, and several of the accused in the case were also related to the pump-and-dump violations of LS Industries Ltd., sources said.
Additionally, the regulator is treating the case as an important development, as it believes that the investigation is likely to lead the regulator towards more such schemes as well as to entities involved in orchestrating them, including those involved in preferential allotment-related violations.
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