SEBI's crackdown on a pump-and-dump ring around Quasar India Ltd is a blunt reminder that Indian micro-caps can run on hype, not fundamentals. The scheme stretched from May 2022 to March 2023, with 18 entities circulating shares to push the price [1], and the stock surged from about ₹8.65 to ₹42.36 before a public dump [1]. Regulators fined the players roughly ₹2.5 crore, with two operators hit for ₹7 lakh each [1].
Red flags spotted in the Quasar saga
- Low-liquidity stock, with volume dominated by a few accounts [1]
- Price rise with little or no credible news [1]
- Public shareholding swelling after the pump [1]
- Cautionary note from STARLENT: penny stocks can be highly volatile with questionable fundamentals [5]
- Posts flag a stock with no sales and a hefty market cap in the hundreds of crores range as a red flag example [3]
Quick-diligence tips
- Always check why price/volume is moving; if you can’t find a credible fundamental reason, assume manipulation risk [1]
- Look for real fundamentals and beware large gaps between price action and earnings or sales, as seen in the STARLENT example [5]
- Verify data with credible sources and don’t chase hype in micro-caps lacking visible traction [3,5]
Bottom line: in Indian micro-caps, hype can outrun facts. Rely on verifiable signals, stay skeptical of sudden pumps, and slow down before buying the next breakout.
References
SEBI Busts Another Stock Manipulation Ring — Quasar India Pump & Dump Exposed
SEBI exposed Quasar India pump-and-dump via circular trading; price surged then fell; public holding rose; fines issued; invest cautiously today.
View sourcePump and dump waiting to happen
Post cautions about a stock driven by retail investors, claiming no sales and overvalued market cap.
View sourcePut 5% capital in Penny stock (STARLENT) SUFFERING from operators or I dont know what?
User discusses STARLENT penny stock, bought at ~Rs4, cites intrinsic value ~Rs28, seeks red flags and public data.
View source