Probe to look into fraudulent share transfer

Police have initiated a preliminary investigation into fraudulent transfer of stocks and shares from the demat account of one Jitendra Magan Jivrajani by unidentified miscreants following an application filed by Satishkumar Nendungadi, officiating executive director of Saurashtra Kutch Stock Exchange Limited (SKSEL).

The matter came to light when Jitendra complained to Mansukh Viradiya, officer incharge of demat operations at SKSEL regarding a huge discrepancy in his stock statement on Friday.

While speaking to Business Standard, Viradiya said, "As soon as Jivrajani complained of the fraud, we probed the transactions and it was found that stocks and shares worth Rs 23 lakh were transacted from his demat account and transferred to Matalia Stock Broking Pvt Ltd in Rajkot."

On probing the matter further, it was found that some unidentified miscreant had opened broking account of Matalia Stock Broking Pvt Ltd and transferred shares to it. Viradiya said officials of the Matalia were immediately alerted about the fraudulent stock transfer.

When Business Standard contacted, Rupesh Matalia of Matalia Stock Broking said he came to know about the mischief.

"The miscreant opened broking account with us and transacted stocks worth Rs 23 lakh, of which we have already issued cheques for Rs 3 lakh and Rs 9 lakh each of which stocks worth Rs 3 lakh have already been transacted and payment for the same has also been made. But we have stopped another payment for Rs 9 lakh."

Satishkumar Nendungudi and CEO of SKSE Securities Limited Amit Bhalodi said, "We have taken necessary action by informing the Central Depository Services Limited (CDSL) and Securities Exchange Board of India (SEBI). We have also lodged a complaint with the police."