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Investors in Sylph ‘trapped’

Investors who bought shares of Sylph Technologies that zoomed 99,900 per cent in intra-day trade on Thursday found themselves trapped. A report by Vyas Mohan.

business Updated: May 23, 2008 22:17 IST
Vyas Mohan

Investors who bought shares of Sylph Technologies that zoomed 99,900 per cent in intra-day trade on Thursday found themselves trapped on Friday. They were unable to sell the stock on Friday as no single trade took place in Sylph Technologies counter.

Shares of Indore-based software company Sylph Technologies had reentered the Bombay Stock Exchange (BSE) on Thursday and multiplied 999 times from its previous price of Rs 0.80 to hit an intra-day high of Rs 800, before closing Thursday at Rs 200.

"Manipulators have taken investors for a ride,” Sylph Technologies director Rajesh Jain told Hindustan Times. “There was no information at all as to what was happening to the stock on Thursday and suddenly the very next day, there is no trade at all. This is purely illogical.”

Meanwhile, shares of KGN Industries that hit an intra-day high of Rs 55,000 from a previous closing price of Rs 100 ended Friday lower by 5 per cent at Rs 4,863.

The responsibility now lies with the stock exchange and the market regulator Securities and Exchange Board of India (Sebi) to dig out the culprits who jacked up prices of the two scrips to insanely exorbitant levels. "Investors see high prices for the shares they have, but can't sell them,” Jain said. “Whoever has manipulated the price should be taken to task. We have written letters to BSE and Sebi requesting them to take strict and immediate action.”

When contacted, a BSE spokesperson refused to confirm this. Sebi officials were unavailable for comment.

"We are a small company which got suspended for no fault of ours,” Jain said. “We were suspended from trading on the BSE for non-submission of some details. We had sent whatever was required, but there was some miscommunication and it did not reach the exchange.”