SEBI Cracks Down on Bharat Global Developers: An Urgent Call for Investor Protection

The Securities and Exchange Board of India has taken firm action against Bharat Global Developers Ltd. for fraudulent activities and manipulation of share prices. An interim order has been issued to halt trading and demands transparency from the company, amid further investigations slated to conclude by March 2025.

The Securities and Exchange Board of India (SEBI) has issued an interim order against Bharat Global Developers Ltd. (BGDL) following disturbing findings of fraudulent activities, aimed at protecting investors. This decisive move comes after SEBI received a complaint on December 16, revealing suspicious financial activity including a dramatic 105-fold increase in BGDL's share price.

Detailed investigations by SEBI indicated that previous disclosures showed five promoters with 16.77% of the shares until June 2020, yet an abrupt shift to zero promoter holdings by September 2020. The findings suggest a deliberate scheme to manipulate shares through falsified disclosures, misrepresentations, and non-existent business deals.

The company's practices of portraying fictitious partnerships and operations misled investors, culminating in private allotments selling at inflated prices. SEBI's scrutiny highlights the falsified financial health of BGDL, with sudden revenue spikes in March 2024 contradicting years of negligible financial records. The interim order suspends trading, demanding transparency from BGDL as the investigation continues, targeted to close by March 2025.

(With inputs from agencies.)