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Home  » Business » Mystery shrouds GTB scrip movement

Mystery shrouds GTB scrip movement

By BS Markets Bureau in Mumbai
July 30, 2004 10:07 IST
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The Global Trust Bank scrip seems to be seeing considerable activity despite being a dud stock. On Thursday, the scrip saw a combined volume of 44.72 lakh (4.47 million) shares.

According to market grapevine, an unidentified purchaser has bought shares worth Rs 10-12 crore (Rs 100-120 million) over the last couple of days.

The Global Trust Bank Crisis

Officials at the National Securities Depository Ltd said they would not able to identify the buyer if the shares are not transferred to the beneficiary account and are kept in the broker's account for further trading the following day.

The Securities and Exchange Board of India is learnt to be keeping a close watch on the scrip and has alerted exchanges and depositories to look out for indications of manipulation.

On the Bombay Stock Exchange, the stock closed marginally at Rs 2.41, while on the National Stock Exchange it ended at Rs 2.25.

The buying has flummoxed market watchers and analysts who say that it is the work of desperate shareholders who are deliberately trying to create interest in the scrip by luring gullible investors and then exiting.

However, the buzz that there could be last minute cancellation of the merger refuses to die down.

Incidentally, Sebi has taken the decision not to suspend trading in the scrip, despite the share having no value, so as to give small investors a window to exit, even at a loss.

Analysts said some investors might be using this as an opportunity to book losses and set it off against other gains made elsewhere.
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