Zafar and Uves Sareshwala, promoters of broking firm Parsoli Corporation, were debarred by the Securities and Exchange Board of India (Sebi) after they were found to have fraudulently transferred shares of genuine investors to their own accounts.
In its order, Sebi said that promoters of Parsoli and related entities should not indulge in buying, selling or dealing in securities in any manner directly or indirectly, till further orders, as their acts have severely shattered the confidence of genuine and unsuspecting investors in the integrity and safety of the capital market. The promoters of the company had obtained certain shares of Parsoli in an apparently fraudulent manner from the shareholders who were allotted shares during the initial public offer (IPO).
In many cases, the company had approved the transfer of shares despite a mismatch of the signatures of investors on the transfer deed and available records with the company.