Pentamedia Says Sebi Found Things In Order

Entertainment graphics major Pentamedia Graphics Ltd today said that the Securities Exchange Board of India (Sebi) had found that the company had acted as per the instruction of the allotee and that the shares had not been transferred after the allotment.

A Pentamedia spokesperson said the markets regulator arrived at the decision after Malu Financial Securities, the allotee, had confirmed in the Madras High Court that it had instructed to allot the shares in favour of Nikko Securities. Further, NSDL had also informed the Sebi that the shares had not been transferred after the allotment, the official said.

The problem arose when Nikko Securities, to whom Pentamedia had allotted the shares, pledged the same with Centurion Bank after the collateral value of Nikko's securities with the bank eroded.

Following this, the Bombay Stock Exchange (BSE) suspended trading in Pentamedia owing to irregularities found in the preferential allotment of 10 lakh equity shares issued by the company. However, Pentamedia obtained a stay from the Madras HC against the BSE decision.

About the on-going case, the spokesperson said had absented itself for appearing in the case after the SEBI intimation to the company.

"As regards the pledging of preferential shares under the lock-in, Sebi would be taking it up with the depositories," the official added.

Meanwhile, company officials claimed that they had despatched dividend warrants to all the remaining shareholders. Earlier, the company had admitted that they were unable to send dividend warrants to around 20 per cent of its shareholders before the stipulated 42 days after the declaration of dividend.