Our Bureau

Mumbai, Oct 26

INDIABULLS Financial Services today said that Income-Tax Department had visited 3 out of 129 offices of its subsidiary Indiabulls Securities under a survey for the purpose of third party verifications.

Indiabulls, in a notice to stock exchanges, said the income-tax survey was related to collection of transactions and verification details of the clients of Indiabulls Securities who have dealt in penny stocks.

In the last one month, Indiabulls name has been repeatedly coming in SEBI orders against the promoters of various companies for manipulation of the stock price of their companies.

Several clients had done transaction in these stocks through Indiabulls.

The company said most of such client accounts had been already shut down by Indiabulls Securities as a part of its internal due diligence and compliance process.

The company informed that the purpose of visit of I-T Department was not related to any inspection on account of any companies of Indiabulls group.

Indiabulls group has paid around Rs 36 crore in income-tax for the first six months of the current financial year, the notice said.

The news of I-T officials visiting Indiabulls offices led to a sharp fall in the stock price of the company. At close, the stock of the company was down almost 10 per cent at Rs 158.10 at BSE.

(This article was published in the Business Line print edition dated October 27, 2005)
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