Sebi has also ordered them to disgorge the unlawful gain amounting to Rs 2.31 crore and pay interest at the rate of 20% on the above amount from the date of sale of the shares so allotted till the date of disgorgement. PSTL came out with their IPO during December 2006 and shares were allotted to the applicants on January 2007.
An investigation conducted by the market regulator revealed that out a total of 13 persons, who had applied for shares under the employee category totaling 4.32 lakh shares, seven employees obtained 98.55 of the shares allotted, received the shares in the demat account with the same depository participant and made an unlawful gain of Rs 2.31 crore by selling it soon after listing.
Sebi order said, These seven persons in collusion with PTSL, donned the cloak of employee with manipulative intent and cornered the shares under the employee category of the IPO of PTSL. Five of them abandoned the cloak after making application, but before the allotment, whereas two others did immediately after the allotment. While Sebi has settled the proceedings through consent orders in respect of two of the accused, it declined to settle the proceedings against the other five persons and the company.
The investigation found that all the seven accused came from a good financial background and do not have the necessary qualification and experience required for the job. Despite this the company offered them and they accepted the jobs at Chennai and Bangalore for a meager salary.