Highlights

  • Urja global created a situation to boost share prices

Latest news

Wasn't enjoying film making process till 'Pathan' shoot began: Shah Rukh Khan

Wasn't enjoying film making process till 'Pathan' shoot began: Shah Rukh Khan

Arrested IAS officer's son allegedly dies by suicide in presence of officers

Arrested IAS officer's son allegedly dies by suicide in presence of officers

US President Joe Biden signs new gun control bill into law

US President Joe Biden signs new gun control bill into law

Maharashtra Deputy Speaker issues disqualification notice to 16 rebel Sena MLAs

Maharashtra Deputy Speaker issues disqualification notice to 16 rebel Sena MLAs

Caught on cam: office of rebel Shiv Sena leader Eknath Shinde's son vandalised

Caught on cam: office of rebel Shiv Sena leader Eknath Shinde's son vandalised

Latest stock market scam: This company was selling something that does not exist

SEBI has banned Urja and four of its executives from the markets for two years.

Ever heard of anything called Zacobite? Well, none had until this company got into a contract of selling something that doesn't even exist. Yes, that's true.

On July 13, 2019, Urja Global made an announcement that it entered into an agreement with Japan-based Nippon Shinyaku for the supply of Zacobite for five years. The cost of procurement was stated at $65.5 million with Urja making a 10 percent profit.

Also read/watch | LPG price hiked again, cylinder rates cross Rs 1,000 all over India

However, a search of websites of Urja Global and Nippon Shinyaku by SEBI failed to show any mention of the word 'Zacobite'. Urja Global did not give SEBI any information about the product Zacobite based on either its own research or its past experience in dealing with Zacobite.

No information regarding Zacobite was found to be available in publicly available sources. A Google search for the term Zacobite did not return any significant result. There was no information on the internet or otherwise regarding the material or element Zacobite and its uses.

However, the only reality was a significant increase in Urja Global’s share price. Its stock rose from Rs 2.2 to Rs 3.1 after the company made the announcement of deal. Volumes rose from as low as 73,000 on July 11, 2019 to 93 lakh on July 16, 2019.

While the Japanese company has denied signing any such deal with Urja Global.

Urja Global submitted that it had fallen victim to a fraud committed by certain persons impersonating as representatives of Nippon. While the SEBI noted that the company had actively connived with such persons to create an artificial situation for making the corporate announcement dated July 13, 2019, which was false, misleading and inaccurate.

Also read/watch | SC says GST Council recommendations are not binding on States

The securities market regulator has banned Urja and four of its executives from the markets for two years.

Up Next

Latest stock market scam: This company was selling something that does not exist

Latest stock market scam: This company was selling something that does not exist

Parameswaran Iyer, PM Modi's Swachh Bharat man appointed as CEO, NITI Aayog

Parameswaran Iyer, PM Modi's Swachh Bharat man appointed as CEO, NITI Aayog

Solana launches $1,000 crypto smartphone

Solana launches $1,000 crypto smartphone

DHFL fraud: Yes Bank to PM Housing Scheme, Rs 34,000 cr scam explained

DHFL fraud: Yes Bank to PM Housing Scheme, Rs 34,000 cr scam explained

NYC rents hiked by most in 10 years: Only 1 out of 5 full-time workers can afford it

NYC rents hiked by most in 10 years: Only 1 out of 5 full-time workers can afford it

Price of scooter and bikes to be hiked from July 1

Price of scooter and bikes to be hiked from July 1

More videos

What a return gift! Birthday boy Gautam Adani to give $7.7 bn for social cause

What a return gift! Birthday boy Gautam Adani to give $7.7 bn for social cause

Season 1 Episode 2: Netflix binge layoffs continue

Season 1 Episode 2: Netflix binge layoffs continue

Grasping at straws! Juice boxes face big problems, squeezed by deadline

Grasping at straws! Juice boxes face big problems, squeezed by deadline

Is the crypto ecosystem crumbling? Layoffs to withdrawals the chips start to fall

Is the crypto ecosystem crumbling? Layoffs to withdrawals the chips start to fall

Explained: Big changes from July 1 for your credit card, banks not ready

Explained: Big changes from July 1 for your credit card, banks not ready

Top 5 'fat-finger' trades that rocked global markets

Top 5 'fat-finger' trades that rocked global markets

Explained: What is a fat finger trade and how it can make you lose crores!

Explained: What is a fat finger trade and how it can make you lose crores!

Excess luggage to cost you, even on trains - new regulation released

Excess luggage to cost you, even on trains - new regulation released

UK opens new visa option, and you do not need a job to apply

UK opens new visa option, and you do not need a job to apply

Stars and Startups| Where are Bollywood divas putting their money

Stars and Startups| Where are Bollywood divas putting their money

Editorji Technologies Pvt. Ltd. © 2022 All Rights Reserved.