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Ransi Software’s director fined over share manipulation

Ransi Software’s director fined over share manipulation
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First Published: Wed, Feb 28 2007. 03 12 PM IST
Updated: Wed, Feb 28 2007. 03 12 PM IST
PTI
MUMBAI: Market regulator Securities and Exchange Board of India (Sebi) has imposed a fine of Rs54 lakh on Kunaram Chaudhary, promoter and director of Ransi Software, for his failure to furnish information, manipulate dealings and cheating investors over the script of Ransi Software Ltd (RSL).
The regulator said the promoters of RSL issued preferential shares on consideration other than cash to some entities, allegedly overvaluing these entities. Subsequently these shares, which were denied listing for overvaluation were dematerialized and offloaded.
On 14 December 2001, RSL issued 5,00,00,000 shares of Rs10 each on preferential basis for consideration other than cash to the existing shareholders of Madho Agro Farm Pvt Ltd and P C Patel Green Wood Pvt Ltd on the terms and conditions for acquisition of 100% equity of the said companies.
It is alleged that the said shares were issued on a valuation of Rs50 crore as against an independent auditor’s valuation of Rs5 crore involving gross overvaluation of the said companies for the purpose of issuing shares on preferential basis.
In view of the irregularities such as overvaluation of the said companies for acquisition of which shares were allotted on preferential basis, listing permission for the said preferential issue was not granted by BSE. However, the said shares were allegedly dematerialized and traded in connivance with certain entities.
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First Published: Wed, Feb 28 2007. 03 12 PM IST
More Topics: Money Matters | Derivatives |