SEBI bans Bellary Steel for 5 yrs

Press Trust of India

Friday, April 04, 2008 (Mumbai)

Market regulator SEBI on Friday banned Bellary Steels and Alloys along with three other entities and their directors from accessing capital markets for five years in a case involving issuance of duplicate shares.

The other entities which have been banned include SN Finance, Kodiganti Finance and Panchloha Hotel.

While issuing the order SEBI also directed Bellary Steels to cancel the duplicate shares lying in the demat account of Panchloha Hotel and take "appropriate steps... to recognize the valid shares pledged with the Karnataka State Financial Corporation (KSFC) in the books of the company/STA (share transfer agent)/depositories".

SEBI passed the order after investigating a complaint by KSFC in January 2006 that Bellary Steel has issued duplicate shares with the same distinctive numbers "with the malafide intention to cheat KSFC".

The regulator in its interim order on February 1, 2006 had directed BSAL not to issue any more shares or alter the share capital till further directions.

Updated: 04/04/2008 | 09:42 PM IST