Morepen Laboratories dives 17 per cent after SEBI prohibition

Shares of Morepen Laboratories nosedived nearly 17 per cent on Wednesday after the market regulator, Securities and Exchange Board of India (SEBI) directed the company to restrain from accessing the security market or dealing in securities for a year.

In the press release, the company stated that - SEBI vide its order no. WTM / AB / EFD-1 / DRA-1/21/2019-20 dated September 24, 2019, in the matter of issuance of Global Depository Receipts by the Company, wherein, SEBI has directed, prohibition on securities market's access and restraining from buying, selling or otherwise dealing in the securities, either directly or indirectly or in any other manner whatsoever, for a period of one year, to the Company.

In this regard, the company is seeking advice for pursuing suitable remedies including filing of appeal before the appropriate forum.

The company had clarified that the said global depository receipt (GDR) matter referred to the year 2003, which was finally settled by the SEBI on September 24, 2019. Also, the company updated that there was no impact on the existing securities listed with the stock exchanges as well as no financial implications on the business operation of the company of the said order.

On Wednesday, the shares of Morepen Laboratories had opened in BSE at Rs.19.00 as compared to the previous close of Rs. 21.75. The stock hit an intraday high of Rs. 19.65 and intraday low of 18.00. At 11:10 hours, the stock was trading at Rs. 18.85, down by 13.33 per cent.