sebi:WTMN/4/MIRSD/6/04
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Facts / Headnote
Direction to ITIL to transfer records of existing clients to another registered Share Transfer Agent or to the companies concerned within 21 days; registration found expired and cancelled.
Provisions invoked
- s. 19
- s. 11(1)
Parties
- Information Technologies (India) Ltd.
Holding
ITIL was directed to transfer the records of its existing clients, if any, to another Share Transfer Agent registered with SEBI or to the companies concerned within 21 days of the order, its Category II Share Transfer Agent registration having expired and stood cancelled.
Full text
Apart from BSE the scrip is also listed on National Stock Exchange and Delhi Stock Exchange. ITIL is also a share transfer agent and the share transfer activities of the company were managed in house. M/s. Industrial Finance Corporation of India Ltd. (hereinafter referred to as "IFCI") made a complaint to SEBI vide letter dated 23rd December, 2002 against ITIL alleging non-credit of 2.265 million shares of ITIL face value of which being Rs.5/- in the Demat account of IFCI. IFCI in its complaint to SEBI submitted that IFCI Ltd. had sanctioned rupee term loans and guarantee facility to Koshika Telecom Ltd. (hereinafter referred to as "KTL") for which facility KTL had pledged 2.265 million shares of ITIL held by M/s. Ramkrishnan Kulwant Rai Agencies Pvt. Ltd. (hereinafter referred to as "Rai Agencies") as security in favour of IFCI. The shares of ITIL were split into shares of face value of Rs. 5/- in May 2000. Pursuant to the split of shares, IFCI lodged the same with ITIL in November 2000 for dematerialization. The split of shares to face value of Rs. 5/- entitled IFCI a credit of 4.53 million shares into their Demat account (i.e. 2.265 million shares of Rs. 10/- each doubled with face value of RS. 5/- each after splitting). It was alleged by IFCI in their complaint that ITIL, instead of crediting 4.53 million shares of Rs. 5/- each into IFCI demat account, credited only 2.265 million shares of Rs. 5/- each into IFCI account and deposited the remaining 2.265 million shares of
ITIL in respect of account of Rai Agencies was received and was demated on 22nd November 2000. SEBI vide order dated 21st April 2003 ordered an inspection of ITIL’s books of account, records, documents and infrastructure, systems and procedures, inter-alia, to look into the IFCI’s complaint. On 14th May 2003 an inspection team of SEBI visited ITIL office at A-41, Mohan Cooperative Estate, Mathura Road, Badarpur, New Delhi – 110 044 (hereinafter referred to as "Badarpur premises") for inspection but ITIL could not be traced. It was reported that an educational institution was being run by Shri Vinay Rai and others in the name of ‘Rai Foundation’ at Badarpur premises and persons at the Rai Foundation claimed no knowledge about ITIL. Subsequently, an inspection team of SEBI visited Lesag House, 11/2, Delhi Mathura Road where security guards informed that ITIL office had been shifted to Badarpur premises. On a visit to Badarpur premises again, the team was told that ITIL had shifted to Microwave Towers, Adekhi Colony, Shankar Vihar Colony, Hardoi Road, Lucknow. Uttar Pradesh Stock Exchange (hereinafter referred to as UPSE), advised to check up at the said premises at Lucknow, informed that there was no trace of ITIL at the given address. As per NSDL records, ITIL had an office at B-303, Ansal Chambers, Bhikaji Cama Place, New Delhi. When the Inspection team visited that place on June 25, 2003, ITIL was not found there too. As per SEBI records ITIL was located at 12/1, Delhi Mathu
2003. He further stated that he did not have any knowledge of SEBI correspondence with regard to the complaint of IFCI forwarded by SEBI. When the inspection team visited Badarpur premises, they could only talk to Mr. Naresh Kapoor over the phone from the ITIL reception located at Badarpur premises and learnt that he had resigned from ITIL three months back and is no longer connected with ITIL.
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Source: SecMarx — sebi:WTMN/4/MIRSD/6/04. 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.