Pentamedia Pref Allotment Case Referred To DCA

New Delhi, November 27: | Updated: Nov 28 2002, 05:30am hrs
Sebi is yet to finalise its investigation about the price manipulation in the scrip of Pentamedia Graphics Limited (PGL) and has referred the issue of preferential allotment of 10 lakh shares of Pentamedia to Malu Financial Services Limited (MFSL) to the department of company affairs (DCA). Sebi has stated in the report that it is still in the process of collecting evidence and recording officials of the company, promoters, and certain stock brokers. The market regulator is also awiting the DCA report before it initiates proceedings under the Sebi Act. Sebi had initiated action against the preferential allotment of PGL after it had recieved complaint from the Bombay Stock Exchange (BSE) alleging non-compliance of guidelines regarding lock-in of shares alloted in the preferential issue after the listing permission was granted.

PGL has come out with three preferential issues during the past three years. In the first issue 29,30,000 shares were allotted to 48 entities on February 15, 1999. In the second issue, 35,19,296 shares were alloted to 5 entities on Decmber 22, 2000, while in the third tranch 10 lakh shares were allotted to MSFL on January 1, 2001 which were under lock in for one year upto Jan 30, 2002.