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Expanding its probe into an alleged large-scale scam in conversion of physical shares into demat format, markets watchdog SEBI has decided to conduct a detailed forensic audit of the books of Sharepro and some other registrars and share-transfer agents.
SEBI suspects hundreds of individuals and market entities to be involved in the case wherein several listed blue-chip companies are said to have been defrauded by a syndicate with the help of some registered entities, a senior official said.
The modus operandi followed by the scamsters typically involved filing of complaints about loss of physical-share certificates, followed by issuance of fresh shares in demat format and even unclaimed dividend to fictitious beneficiaries by conducting a fraudulent ‘due-diligence’ exercise.
In several cases, the scamsters approach the real owners of physical-share certificates and purchase the same for a nominal amount, after which they file a compliant about loss of physical shares and get issued duplicate shares in demat.
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