Sebi orders sale of shares held by 3 defaulters

With a view to recover an amount totalling Rs 11 lakh, market regulator Sebi today ordered sale of shares held by S S Forgings & Engineerings Ltd and two other entities.

S S Forgings & Engineerings Ltd have failed to pay dues to the tune worth Rs 7 lakh, while two other defaulters-- Hirji Kanji Patel and Pooja Menghani-- did not pay amount worth Rs 3 lakh and Rs 1 lakh respectively.

These defaulters were found to have violated various securities norms.

Consequently, the Securities and Exchange Board of India (Sebi), in three separate orders, has ordered sale of equity shares held by these defaulters.

"The shares shall be sold during the market trading hours from June 16, 2014 on the BSE and National Stock Exchange (NSE) till entire dues are recovered in full or till the shares are exhausted, whichever is earlier," Sebi said.

Sebi said that sale will be stopped in case the arrears along with interest, cost (including the cost of the sale) are paid by defaulters.

S S Forgings & Engineerings owns shares of Vertex Spinning, Brakes Auto (India) Ltd. Menghani has stocks of Ahmednagar Forgings, HDFC Bank and Unitech. Patel has scrips of Allied Computers International (Asia) Ltd, FCS Software Solutions and Visesh Infotecnics.

In March, the President of India had re-promulgated the ordinance for the third time that provides Sebi with powers to detain and arrest defaulters, among others.