- SEBI found in investigation that the promoters of the company were cheating the share certificates of common shareholders
- The company was suspended from BSE twice, the company also changed the name, but the fraud continued.
Jun 30, 2020, 08:18 PM IST
Mumbai. Capital market regulator SEBI has imposed a penalty of more than Rs 1 crore on 20 others, including promoters of Financialis Credit and Guarantee Company Private Limited, in the matter of transfer of shares of common public. SEBI has found many companies guilty in this.
SEBI has imposed a penalty of 20 lakh rupees on financial credit, Rs 10 lakh on Bipin Devacha, 10 lakh on Sham Sadhuram, 10 lakh on Dilip Shah, 10 lakh on Jigar Shah, Sharad Gaadi, Mohammad Rafi, Roma Khan, Mohammad Salim Khan, Amir Khan, Abdul Khan, Talat Mohammed, Rehana Khan have been fined Rs five lakh each. Apart from this, fines have also been imposed on Balaji Investment, Jagdish Sarkhot, Market Pulse, Saga Financial etc.
SEBI also handed over the investigation to Mumbai Police
SEBI revealed in the investigation that it had received a complaint from the public about the company. He also referred this complaint to the Economic Offenses Wing of the Mumbai Police. Sebi said Sajjad Pavane resigned as the company's MD in December 2012. However, this resignation was not accepted. Because a lot of complaints were pending. The first complaint was received by SEBI on 29 August 2012. While the last complaint was received on 8 May 2013.
Fake share certificate used
SEBI found in the investigation that the original public share holders were issued was fake. Simulated documents were submitted as share certificates. These shares were subsequently bought and sold. Finanalis Credit and Guarantee Company Private Limited was established on 7 April 1988. On 23 August 1995, the company changed the name to Finanalis Credit and Guarantee Company Limited.
The company was listed on BSE on 19 June 1996 and was suspended on 13 May 2002 for violation of the rules. However, the suspension was lifted on 28 March 2012. After this, the company was again suspended on 9 September 2014.