New Delhi : As a crisis continues at Amtek Auto, markets regulator Sebi has begun a probe into alleged share price manipulation at its listed subsidiary Castex Technologies through forced conversion of foreign bonds.
Auto component maker Amtek is grappling with financial issues and its shares have also taken a beating in recent weeks, while exposure to its bonds have created ripple effects in the mutual funds and other market segments as well.
Sources said Sebi is seriously looking into the matter following allegations by some bondholders that efforts are being made to manipulate the share price of Castex Technologies by forcibly asking investors to convert their bonds.
On July 31, Castex Technologies informed the BSE that its board of directors has decided to mandatorily convert all the outstanding bonds of USD 80.80 million out of FCCB (Foreign Currency Convertible Bond) issue of USD 130 million.
