sebi:CO/17/ISD/09/2004
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Provisions invoked
- s. 4(3)
- s. 11
- s. 11(4)
- s. 12
Regulations
- Reg. 11
- Reg. 3
- Reg. 9
- Reg. 12
Parties
- DSQ Software Limited
- Shri Dinesh Dalmia
Holding
The order records findings that DSQ Software Limited and its Managing Director Shri Dinesh Dalmia fraudulently allotted 1.30 crore (and up to 1.70 crore) shares to non-traceable entities and trusts, dematerialized them as fully paid-up under the existing ISIN without listing permission, and offloaded them into the market through associated entities and brokers, thereby misrepresenting unlisted shares as listed shares.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER Order under Section 11(4)(b) and 11B read with Section 4(3) of the Securities and Exchange Board of India Act, 1992 read with Regulation 11 of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 against DSQ Software Limited and Shri Dinesh Dalmia, Director CO/17/ISD/09/2004
touching daily average volume of 10, 00,000 shares) on all The Stock Exchange, Mumbai (BSE), National Stock Exchange (NSE) and Calcutta Stock Exchange (CSE).
premium of Rs.970/- were fraudulently allotted to New Vision Investment Ltd. U.K. The shares were then dematted and either sold in the market through brokers demat account of other brokers and DSQ Holdings & Hulda and sold thereafter. It was observed that a majority of these shares allotted on a preferential allotment basis to New Vision Ltd., were used to meet the pay-in obligation of DSQ Hol Properties & Trades Ltd. The shares which were not listed on the exchanges were sold on the terminals of the exchanges by entities which belong to DSQ group and Hulda Properties & Trades Ltd. and delivered at the time of pay-in obligations as good delivery knowing that the shares were not listed. Therefore, it was observed In respect of the 30,00,000 shares allotted to New Vision on 20.5.2000 that the shares were allotted to New Vision Ltd., UK on a part however, in its application to the depository – National Securities Depository Limited (NSDL) for dematerialization, the company had indicated that the shares w and consequently, the partly paid up shares were dematerialized by the depository as fully paid up and given the same ISIN in which the shares issued earlie Shares were then sold by promoter associated entities. All the shares were thus offloaded by December 2000 itself i.e. within 7 months and the listing applic afterwards to the Stock Exchanges in January 2001 (i.e. after 8 months) for these shares. Moreover, it was seen from the Board resolution of the company passe that the
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Source: SecMarx — sebi:CO/17/ISD/09/2004. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.