Johannesburg - The Financial Services Board is investigating trades in Oakbay Resources and Energy, a company linked to the politically connected Gupta family, to determine whether share prices were manipulated over a five-month period.
The financial regulator said in a statement on Tuesday it will probe share moves from when Oakbay listed in November 2014 through April 2015. The stock rose almost 11% over that period, on higher average volumes than in the months leading up to its delisting in July this year, according to data compiled by Bloomberg.
The investigation comes a month after Bloomberg News reported that Oakbay’s share price was inflated by the Guptas, who lent money to a Singapore firm to be used to trade the equities. The Indian-born family are friends with President Jacob Zuma and have been accused of using the relationship to win lucrative state contracts and influence the appointment of cabinet ministers. The Guptas and Zuma deny wrongdoing.