Ase Queried On Trade In Suspended Shares

Exchange sources said yesterday that the BSE had received information that trading in the two scrips continued on the Ahmedabad Stock Exchange. This was despite the fact that fake share certificates running into lakhs had been detected. "The letter has already been sent to the ASE secretary, however, we have yet to receive a formal reply," sources said.

Despite several attempts, ASE executive director M L Soneji could not be contacted.

BSE sources pointed out that according to a Securities and Exchange Board of India (Sebi) directive, all stock exchanges should follow a common programme which means that if a stock is suspended from trading following irregularities by a particular exchange, then other exchanges should also follow suit.

 

"However, this was not done in the case of Incab Finance and Maha Chemicals," they added.

According to reliable sources, the ASE has been questioned about continued trading in the scrip despite the Sebi directive. The letter has also warned the ASE on the consequences for permitting trading in forged scrips. "Trading in forged share certificates (bearing similar distinctive numbers) would automatically lead to stock market complications at the clearing-house end," BSE sources said.

Stock market sources said as many as 4 lakh forged share certificates had been detected in Incab Finance alone, while in Maha Chemicals the figure is higher at over 5 lakh. "So many forged shares have been detected so far, the actual number can be even higher," they added.

Niraj Shah, an operator, is said to be connected with both the cases, and a police inquiry is presently underway.

"These forged share certificates were printed in Thane-based Orient Press. In Incab, there is no indication of promoters' involvement, while in Maha Chemicals there is ample evidence that promoters (through a sister concern, Superior Capital Ltd) have colluded in printing the forged shares," sources pointed out.

Market sources said the promoters of Maha Chemicals had pledged their shares with financiers to raise funds. After the promoters failed to meet their payment obligations, the financiers sold the shares in the market. The promoters of Maha Chemicals are currently

absconding.