SEBI imposes penalties on 13 entities in Sharepro fraud case


Market regulator Securities and Exchange Board of India (SEBI) on Friday slapped a penalty of between ₹5 lakh and ₹15 crore on 13 notices in a matter of fraud committed by share transfer agent Sharepro Services (India).

According to SEBI, at least securities worth Rs 60.45 crore and dividends worth ₹1.41 crore of genuine shareholders were misappropriated in the fraud. Further, certain unlisted securities of genuine shareholders were also misappropriated.

A penalty of ₹15.08 crore was levied on Indira Karkera, the vice-president of the RTA and a client manager for various companies. Balram Mukherjee, a beneficiary of the fraud, was levied a penalty of ₹10.01 crore. Govind Raj Rao, the managing director of the RTA, was imposed a penalty of ₹5.16 crore.

“I am constrained by the facts that, proceedings in respect of some of the noticees have been abated, lots of the funds (from sale of misappropriated securities and dividend) were withdrawn in cash, and the established fund and securities trail to the remaining noticees found guilty of the fraud, doesn’t add up to the entire value of the assets misappropriated; and hence not able to compute the exact ill gained profit made by each of the noticee found guilty of fraud,” the adjudicating officer Asha Shetty said.


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