Our Bureau

Mumbai , Sept 30

SEBI has cracked down on the promoters and directors of two more companies - Prime Properties Development and Konkan Tyres - for alleged price manipulation in shares of their companies.

The market regulator has prohibited promoters and directors of these companies from dealing in the shares of their companies, SEBI said in a release today.

SEBI has also directed several brokers not to deal in the shares of these two companies on behalf of promoters and directors and some of the clients.

In the case of Prime Properties Development, SEBI observed that promoters and directors of the company had undertaken transactions in the shares of the company during the period June to September 2005 and have made a net sale of more than nine lakh shares.

During this period, there was spurt in the stock price of the company. From Rs 53 level in the first week of July 2005, it jumped to Rs 300 in September in the background of several announcements detailing proposed business plans and completion of projects as well as changes in the equity structure.

On Friday, the stock price of the company was locked in 5 per cent lower circuit at Rs 190.35 on BSE.

As for Konkan Tyres, SEBI preliminary inquiry found that the promoters of the company were found to have sold large quantities of shares around the time of making corporate announcements.

The market regulator said the recent increase in price and trading volume in the shares of Konkan Tyres is unprecedented and is not supported by the poor financial performance of the company. The company has been making a flurry of favourable corporate announcements in the recent past, which has apparently increased the price and trading interest in the share of the company.

The information so far collected by SEBI has raised doubts regarding the genuineness of the corporate announcements, the release said. Konkan Tyres stock closed at Rs 13.65, down 5 per cent on BSE today.

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