Amid the multi-agency probe into stock market volatility, a SEBI-registered investors grievance forum has unearthed price manipulation in 1,138 penny stocks whose prices have surged by 100-3,000 per cent in last 12 months.
Investor Grievance Forum chairman and former Parliamentarian, Kirit Somaiya, will submit to the finance ministry a 50-page document containing evidence of possible market manipulations in these stocks.
"There is no doubt in the fact that these penny stocks have been manipulated," he told PTI in New Delhi.
During the hype in the capital market, he said, "small investors are getting attracted towards these penny stocks and they will get trapped. We are concerned about the small investors."
Somaiya is slated to meet Minister of State for Finance S S Palanimanickam along with other officials in the ministry on Friday and submit the 50-page document.
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