Stock Market

Asian Paints sacks registrar Sharepro for share, dividend theft

Asian Paints has terminated the agreement with its registrar and transfer agent, Sharepro Services (India) with effect from April 1, and sought the arrest of Sharepro’s Managing Director GR Rao and Operations Head Indira Karkera for for illegal transfer of the dividend and shares of some shareholders by fraudulent means.

In the First Information Report filed by Asian Paints at the Saki Naka police station, the company has alleged that the shares of some shareholders were transferred to the accounts of Sharepro employees by forging documents and opening fake demat accounts, bank accounts and trading accounts.

“Dividend amounting to Rs 65 lakh of different shareholders and 8460  shares of one  shareholder Rekha Parekh worth Rs 71.91 lakh, and 7330 shares of  Amarjit Kaur Arora worth Rs 62.30 lakh were sold to others without the consent of these shareholders,” Asian Paints said in the FIR.

The City Civil and Sessions Court has rejected the anticipatory bail applications of the managing director and the operation head at Sharepro.

Sebi had asked Asian Paints to look into the matter after an anonymous letter tipping the regulator about the irregularities at Sharepro.

In a notice to the stock exchanges last Friday, Asian Paints said it was in the process of evaluating an alternate registrar and transfer agents for a smooth transition and will make necessary disclosures on any development in this regard.