ED raids in Mumbai, Delhi, Surat in Sunrise Asian scrip price manipulation case
The Enforcement Directorate (ED), Mumbai Zonal Office conducted search operations on July 31 under.
The Prevention of Money Laundering Act (PMLA), 2002 at various locations in Mumbai, Surat and Delhi as part of an ongoing investigation against M/s Iceworth Reality LLP and other entities in connection with manipulation of prices in scrip of Sunrise Asian Limited (SAL).
During the search operations, movable properties in the form of diamonds, bank funds, demat account holdings and cash to the tune of approximately Rs 38.57 crore were either seized or frozen and various incriminating documents, digital devices were recovered as well.
The ED initiated an investigation on the basis of a complaint under various sections of the Securities and Exchange Board of India (SEBI) Act 1992.
The case pertains to manipulation of stock prices of the scrip of Sunrise Asian Limited (SAL) by M/s Iceworth Reality LLP and other accused persons and entities in collusion with several interconnected group entities thereby making unlawful profits at the expense of bonafide investors.
Furthermore, the hike witnessed in the price of the scrip during the investigation period was not in synchronisation with the actual financial performance of the company and was solely on account of the manipulations committed by the group entities.
The ED investigation revealed that several entities and individuals had derived huge profit by indulging in the manipulation of prices of the scrip of SAL, while causing losses to genuine investors.
The illegal profits derived in this manner were routed through the accounts of different entities and individuals, with some of them being engaged in the business of diamond trading.
Further investigation is under progress.