New Delhi : In more troubles for crisis-hit Amtek Auto, Sebi has widened its investigation into alleged share price manipulation at its subsidiary Castex Technologies with role of banks, mutual funds and rating agencies also coming under the scanner. The capital market regulator has started an investigation into possible rigging of Castex Technologies’ share price through forcible conversion of foreign bonds. While it has taken a serious note of the allegations, sources said Sebi has expanded the probe into the matter suspecting that more players could be involved in efforts to manipulate the share price of Castex Technologies.
Besides promoters of the company, Sebi is now looking at the possible role of banks, mutual funds and rating agencies in the whole issue, according to sources.
It was alleged by some bondholders that efforts were being made to rig the share price of Castex
Technologies by forcibly asking investors to convert their bonds. Amtek Auto and Castex Technologies could not be immediately contacted for their comments.
Auto component maker Amtek is grappling with financial troubles and its shares have been battered in recent weeks.
