SEBI order in the case of fraudulent practices and absconding management

Securities and Exchange Board of India (hereinafter referred to as “SEBI”) received a complaint with regard to the preference shares issued by M/s. SGI Research & Analysis Ltd. (hereinafter referred to as ‘SGI’). In the said complaint, it was inter-alia alleged that Shri  Lokeshwar Dev (promoter/director of SGI) had raised more than fifteen hundred crore rupees belonging to two lakh investors and had vanished alongwith his entire staff. It was also alleged in the complaint that SGI had offered 18% preference shares of face value `10/- each at a premium of INR 1,500/- per share to investors. The investors were induced by the promise made by SGI that the shares will be listed on the stock exchanges after SEBI approval and the listing price would be around INR 2,000/- per share. Further, the SGI had informed the complainant that subscription for the said preference shares was opened somewhere in October, 2010 and the scheme may get closed in January, 2011.

The full order and corigendum to this order is attached for download.

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