Mumbai-based Siemens has lodged a complaint with the economic offences wing (EOW) of the Mumbai police that it received 22,500 fake/forged shares while executing transfer of shares. Sources said most of these fake share certificates have been detected over a period of one year.The cases of fake share certificates detected are more during the book-closure period.
There has been a marked increase in number of cases registered at the EOW for fake, forged shares, officials said.
We are trying to investigate whether there is any organized group which is involved in the introduction of such shares on a mass scale in the market, a source at the EOW said. He declined to provide any further details on these matters since investigations were underway.
Since large number of shares are sent for transfer during the book-closure period, most of the share certificates float from one buyer to another. Since most of the investing public do not send the shares for transfer immediately, the fake share cerificates get detected during the book closure period, Siemens officials said.
The incidence of introducing fake shares is highest when the particular scrip is heavily traded at the bourses and also if it commands a higher price, officials said.
Cases of fake, forged shares being introduced into the market through sub-brokers at a discount to the prevailing market price is also on rise, police sources said.
The sub-brokers, who are often unaware of the clients or sometimes the introducing broker, are sometimes lured into selling high priced scrips at price lower than the prevailing market price by he client. This is done with the intention of pulling out of the market quickly. The rapport between the client/introducing broker with the sub-broker is built on the basis of small authentic deals executed earlier.
