SEBI to play Sherlock: Tree House Education derails by 10 %

As per widespread media reports, market regulator SEBI (Securities and Exchange Board of India) has begun investigating the defunct Tree House Education matter after the recent reports of the company shutting down its schools in certain parts of the country that subsequently led to a decline in the stock price of Tree House Education.

The market regulator seems to have woken up at last and has launched an initial probe.  SEBI would be looking after all the possible angles, right from promoters' role to investigating alleged accounting mal-practices in the company.

This development comes amidst media reports of Tree House closing its schools in various locations due to deteriorating finances of the company, which ultimately led them to closing of the schools and subsequently Zee Learn calling off the merger.

The stock has lost more than 91 per cent year to date, which has led to many small retail investors losing a lot of wealth in the stock due to the dubious dealings of the management, all of which has reflected in the share price movement of the company.

Market regulator should have come to the rescue much before all the recent reports, as the company did not have a good track record to show.

Stocks of Tree House Education are trading down 10 per cent at Rs 15.90 on NSE.