MUMBAI, DEC 9: Bears tightened their grip at the Pentafour Software counter on Wednesday, on the back of rumours that the company was raided by Income Tax officials. Interestingly, these rumours helped the local punters further create short positions at the counter during the first phase of the trading session itself, with the stock being hammered down to a low of Rs 495.05.Rumours of raids by the IT department as well as that by the Enforcement Directorate and that of the Department of Revenue raids at the Chennai office and a fresh Sebi investigation into alleged price rigging in the scrip, played havoc at the Pentafour counter. Despite repeated attempts the top brass of the company could not be contacted.
Market was also rife with rumours that three brokers, all based at Chennai, were raided who were alleged to be the front runners of the company circles. However, LK Singhvi, the senior executive director of SEBI, incharge of investigation and surveillance explained that the investigations on thealleged insider trading case in Pentafour is an old case. "No fresh investigations have been launched," he clarified.
The stock was hammered down from the day's high of Rs 537 to a low of Rs 495.55, with a phenomenal volume of over 84 lakh shares on the local bourses. The stock received major support at the crucial level of Rs 495.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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