Shares of Bank of Rajasthan today nosedived 12 per cent on the Bombay Stock

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Exchange after the market regulator SEBI said that the bank promoters have fraudulently hiked their stake in the entity.

After a weak opening, the bank shares plunged 12.28 per cent to a low of Rs 58.60 on the BSE.

The stock market regulator yesterday banned 100 entities related to the Bank of Rajasthan (BoR), including several members from the Tayal family, the promoters of the bank, from all stock market-related activities.

SEBI in its order said, while the promoters apparently conveyed the impression during RBI's annual financial inspection of BoR that they were reducing their shareholding, they did not in fact dilute their controlling stake.

At the end of December quarter the promoters held 55.01 per cent stake in the bank.

Earlier, the Reserve Bank of India had ordered a special audit of private sector lender BoR's accounts, suspecting violation of operational norms by the lender as well as transparency in lending.

SEBI's revelation came shortly after RBI imposed Rs 25 lakh on BoR, alleging violation of a host of norms and appointed Deloitte Haskin to conduct a special audit of the bank.

On the National Stock Exchange the scrip plunged 13.16 per cent to a low of Rs 58.05. Nearly 25 lakh shares changed hands on the two bourses.