Edible oil manufacturers Ruchi Soya and K S Oils today slumped 27 per cent and 19 per cent,respectively,on the Bombay Stock Exchange,amid media reports that the Intelligence Bureau is suspecting unfair trading practices by these companies. Another company Karuturi Global,which is engaged in floriculture business,too plunged 9.98 per cent to hit its lower circuit of Rs 19.85 on BSE. Media reported that Intelligence Bureau is suspecting stock rigging by Ruchi Soya,Karuturi Global and KS Oil and it has sent a report on this to the CBI. Stock rigging is a phenomenon that attempts to pump up a company's stock price by floating favourable news about the company's earnings. Reacting sharply to the reports,Ruchi Soya nosedived 27.44 per cent to touch a month low of Rs 83.10 on BSE in the afternoon session. KS Oils tumbled 17.06 per cent to touch a 52-week low of Rs 32.65. Earlier this month,market regulator SEBI had unearthed a nexus between some mid-cap companies and market operators who are alleged to have rigged the share prices of Welspun Corp,Murli Industries and Ackruti City,ahead of their respective convertible bond issues and private placements institutional investors. The BSE benchmark Sensex too was trading under pressure at 19,665.14,lower by 269.5 points.
