SSI LTD OUTWITS MADURAI GANG
Article Abstract:
SSI Ltd has found a way to outwit the Madurai gang, who have been trying to grab the shares of several companies. The five-member gang have exploited loopholes in the legal process to claim ownership of shares in several big and small companies. They would first inform the concerned companies that they had lost share certificates bought in the secondary market along with the transfer certificates. They would then move the lower court in Madurai to obtain an injunction against the companies from transferring the disputed shares. Mr M Subramanian, a member of the gang, had claimed that he had lost 25,100 shares of SSI Ltd, valued at Rs3.5 crore at current market value, and had secured an injunction against transfer of the disputed shares. SSI Ltd went to the Chennai High Court which has issued a directive to the Madurai court to pass final orders on the interim injunction against SII within 15 days. (khr)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
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SHARE GRAB ATTEMPT BY MADURAI GANG
Article Abstract:
A group of five operators have played havoc with the secondary market in Madurai by claiming ownership of thousands of shares of blue chip companies. This could possibly be a major scam which may affect the interests of small investors by almost Rs20 crore. The operators, who are now called the Madurai group, have used court processes to stop transfer of shares of over 50 companies and hope to secure ownership of the shares through issue of duplicate shares if their claims go uncontested. They first report the loss of share certificates to the respective companies and then petition the local court in Madurai seeking to restrain the companies from registering transfer of lost shares in anyone else's name. They become the rightful owners of the shares if the companies do not challenge their claim and oblige. (khr)
Comment:
A group of five operators have played havoc with the secondary market in Madurai by claiming ownership of thousands of shares of blue chip companies.
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
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