The Anil Dhirubhai Ambani (ADA) group has alleged that a trading cartel led by Sharad Shah also known as ‘Sharad Bobada’ was involved in spreading rumours and manipulating the prices of infrastructure company stocks to unfairly accumulate wealth.
In a letter written to the Intelligence Bureau on February 10 after group companies saw their shares plunge between 9 and 19% on February 9, Reliance Infrastructure said the illegal bear cartel has destroyed market value of over Rs 3,00,000 crore for the infrastructure sector in less than 90 days.
The group also registered a complaint with SEBI on February 9, saying its rivals had been spreading rumours about its companies, leading to stock prices falling.
“The stock market sources indicate that such bear hammering of infrastructure stocks has been led by a powerful stock market operator Sharad Shah, also known as “Sharad Bobada,” said the Reliance Infra letter to the IB, a copy of which was obtained by Hindustan Times.
When contacted Sharad Shah told HT, “I have not done anything wrong.” Reliance Infra’s letter said Shah’s cartel has constantly indulged in manipulation of infrastructure stocks for his “personal enrichment.”