The Hindu Business Line : IGF seeks probe into alleged price rigging in 3 banks

THE Investors' Grievances Forum (IGF) has demanded an inquiry by the Securities and Exchange Board of India (SEBI) into alleged price rigging in the shares of public sector banks ahead of their public issue this year.

The inquiry demanded by IGF is mainly in the shares of three public sector banks - Oriental Bank of Commerce (OBC), Punjab National Bank and Allahabad Bank - at the time of their public offering during March-April.

"Large-scale price rigging and abnormally high trading manipulation took place at the time when the three banks came to market with their public offers in the last few weeks," the IGF President, Mr Kirit Somaiya, said in a release here.

Seeking an inquiry into all public issues, he said the role of foreign institutional investors should be investigated for alleged rigging of prices of bank stocks.

The share price of PNB was around Rs 361 at the end of January. But, at the time of public issue on March 7, it went up to Rs 520 and subsequently, after the issue, it came down to Rs 349. The issue price was fixed at Rs 390, IGF said. On Friday, the stock closed at Rs 366.20 on the BSE.

Allahabad Bank's public issue was in April. The issue price was fixed at Rs 82 per share.

In February, the share was quoted at Rs 69 and trade quantity was 2.97 lakh. According to IGF, the price was manipulated and rigged up to Rs 100 and turnover was rigged up 19 times to 38 lakh shares. The price came down to Rs 76 after the public issue. On Friday, the stock closed at Rs 83.10 on the BSE.

In the case of OBC public issue, against the quota of 2.03 crore shares, individual investors applied only for 78 lakh shares, it added. The new shares of OBC are yet to be listed.

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IGF seeks probe into alleged price rigging in 3 banks