The Enforcement Directorate (ED) has taken action in connection with manipulation of shares of two listed companies M/s RM Drip and Sprinklers Systems Limited and M/s RB Denims Limited. On Friday, the agency raided 29 locations in six cities including Mumbai, Nashik, Ahmedabad. ED investigation has revealed that more than 1 lakh retail investors have lost money after falling prey to tips given through fake WhatsApp groups. The scope of ED’s raids includes the corporate offices of both the companies, residences of their promoters, homes of individuals who acquired shares at throwaway prices, offices of stock-broking and finance firms. Apart from this, the locations of those suspected of running promoter WhatsApp groups were also searched. Many suspicious documents, digital devices, records of share transactions and property related papers have been seized in the action. More than 3.5 crore shares and warrants were issued. The investigation conducted under PMLA revealed that between April 2023 and March 2024, both the companies had issued more than 3.5 crore shares and convertible warrants to selected individuals and institutions. A large part of the amount paid for these shares came from a small circle of connected individuals, firms and lenders. In the months that followed, share prices were continuously raised, while shares mostly remained with the same people. Fake WhatsApp communities were running from Bhavnagar. Investigation further revealed that between late December 2025 and February 2026, WhatsApp communities were created with names like Multibagger Stocks. Through these groups, tips to buy these shares were sent daily to ordinary retail investors. These groups were being run using SIM cards issued in the names of other people from Haryana and Mumbai, but were being operated from Bhavnagar in Gujarat. The number of investors who bought the shares of these two companies increased rapidly due to the lure of fake tips. Initially the number of buyers was around 3,400, which suddenly increased to beyond 1 lakh. WhatsApp groups were suddenly deleted on February 25. According to ED sources, all WhatsApp groups were suddenly deleted on February 25, 2026. Soon after this, the shares of both the companies fell into the lower circuit and within just a few days their prices fell by almost 70%. This caused losses to more than 1 lakh small investors and they were stuck with shares that could not be sold. Also read this news… Sensex rises 413 points and closes at 74,729: Nifty rises 148 points; There was maximum buying in IT and media shares. There was a rise in the stock market today i.e. on 16th October. Sensex closed at 74,729, up 413 points. Nifty also closed at 23,146, up 148 points. Maximum buying took place in IT and media stocks. Read the full news…
Source link
[ad_3]
ED raid on RM Drip-R&B Denims: Raid on 29 locations in 6 cities including Mumbai, 1-lakh investors lost due to manipulation in shares
