DSQ Software will be suspended from trading on the Calcutta Stock Exchange (CSE) from Friday. Earlier, both the Bombay Stock Exchange and National Stock Exchange have dismissed the Dinesh Dalmia-controlled company from trading.
Today being the last day, trading at the counter on CSE was hectic. The scrip oscillated between Rs 28.40 and Rs 32.10 before closing at Rs 31.70 against the overnight closing of Rs 29.90. Nearly 1.46 lakh shares were changed hands with a cumulative value of Rs 45.33 lakh.
CSE sources said the suspension of trading at the counter would be effective until further notice in view of the violation of the provisions of listing agreement by the company.
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Earlier, the Securities and Exchange Board of India (Sebi) had barred the company from accessing the markets for a year. The market regulator also prohibited its promoters from dealing in securities for one year. The steps were taken on the basis of the firm's alleged irregularities in acquisition of a foreign company named Fortuna Technologies. The Sebi investigation on the matter revealed that the company's acquisition of Fortuna was not a genuine deal.
Meanwhile, the suspension of trading at the counter depressed retail investors. They blamed the Sebi for taking steps without keeping retail investors' interests in view. A city-based investor said the suspension would deny the only exit option that was available to small investors. The action was unfair in view of the circumstances, he said and added that the Sebi and the exchanges should have penalised or jailed the promoters and protected the interests of small investors.
As on June 30, 2001, the combined holding of public and foreign institutional investors was 48 per cent in the company. While promoters held 30 per cent, BankAm 8 per cent, Credit Suisse First Boston 5 per cent and balance 10 per cent was held by strategic investors.