IT search on Indiabulls, Fortis

The investigation unit of the Income-Tax (IT) department, Mumbai carried out searches on 14 premises across the city belonging to various stock brokers on Tuesday. Among the prominent broking firms whose premises were searched by the IT officials include Indiabulls Financial Services Ltd and Fortis Securities. The search operations began after the market hours at around 4 pm and further investigations are on, said IT sources.

Interestingly, the IT sources said, the search operation has been carried out on all those brokers who have been dealing in penny stocks in the recent past. Both Indiabulls and Fortis could not be reached for comment.

It may be recalled that the capital market regulator Securities and Exchange Board of India (Sebi) had recently taken swift action against the promoters and direcors of some of the penny stocks in which it found there was a price manipulation and several regulations were flouted by the various market intermediaries.

The market regulator had also asked several brokers including Indiabulls and Fortis Securities to refrain from trading in such stocks.