Capital markets regulator Sebi has issued a 'strong' warning to Zigma Software and advised the company to be careful and cautious while making corporate announcements and their implementation.
It was alleged that the company made several corporate announcements which were allegedly false and misleading and only aimed at creating artificial demand for the scrip to attract the general investors to purchase the shares.
Issuing a warning, Sebi has advised the company "to be careful and cautious of making corporate announcements and their implementation. Any future lapse shall invite stringent action."
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According to the regulator, the corporate announcements made by the company pertaining to bonus issue, preferential issue of shares and real estate project were not implemented.
However, the company provided evidence to Sebi showing that at least some steps were taken to implement the announcements.
Zigma Software submitted details of the measures taken, "such as series of correspondence made with BSE for getting in-principle approval for the issuance of bonus shares and preferential warrants, bank statement regarding payment made to Bennett Coleman & Co. Ltd for real estate project."
Considering all the facts, circumstances and evidences furnished by the company in respect of the steps taken to implement the corporate announcements, Sebi said it is of the view that "the matter may be allowed to rest with a warning to be more cautious and careful in future in making such corporate announcements.
