SEBI bans Finalysis Credit, 13 others for defrauding public shareholders
SEBI has banned Finalysis Credit & Guarantee Co. Ltd. and 13 other entities from accessing the capital market for five years for defrauding public shareholders by issuing forged consolidated share certificates. The market regulator further restricted them from holding any position as director and key managerial person in any listed company or any registered intermediary for a period of five years. Further, four of these entities have also been told to pay back the money made through illegal means.
These entities as mentioned above devised a simple modus operandi by issuing forged consolidated share certificates to original public shareholders. Then they sold these certificates to people who were brought by these entities itself to remove any doubts in the minds of original shareholders that the certificates were fake. It was further alleged that sale consideration for the sale of the shares explicitly moved to these entities and not to the transferors or original shareholders.
