ED: Several entities, diamond traders derived huge profits from stock manipulation

ED probe reveals Iceworth Reality LLP and others manipulated stock prices, generating illegal profits, causing losses to genuine investors in collusion with diamond trade entities.

MUMBAI: The Enforcement Directorate (ED) money-laundering probe against a realty firm, Iceworth Reality LLP, and other entities accused of manipulating stock prices, revealed that several entities and individuals derived huge profits from it and caused loss to genuine investors.

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The profits obtained illegally were reportedly channelled through various entities and individuals’ accounts. Some of these entities were involved in the diamond trade business. The exact roles of these entities are currently under investigation by the authorities.

The investigation is based on a complaint under various sections of the SEBI (Securities and Exchange Board of India) Act, 1992. The case involves alleged manipulation of stock prices of the scrip of Sunrise Asian Limited (SAL) by Iceworth Reality LLP (Limited Liability Partnership) and other accused persons/entities in collusion with several inter-connected group entities, agency sources said.

A scrip is a certificate which shows that an investor owns part of a share or stock. The alleged manipulation resulted in the generation of “unlawful profits at the expense of bonafide investors”, agency sources said.

On July 31, ED conducted searches in Mumbai, Surat (Gujarat), and Delhi and seized/froze movable assets worth ₹38.57 crore. The attached assets including movable properties in the form of diamonds, bank funds, demat account holdings and cash worth ₹38.57 crore were seized/frozen and various documents and digital devices were recovered and seized.

ED’s investigation has revealed so far that the alleged increase witnessed in the price of the scrip during the probe period was not in synchronisation with the actual financial performance of the company, the sources said.

The ED probe suggested that the increase was allegedly exclusively based on the manipulations committed by the group entities, the sources said. “Several entities and individuals had derived a huge profit by indulging in the manipulation of prices of the scrip of SAL and their roles are being examined,” an ED source said.