The Hindu Business Line : DSQ debarred from market for 10 years

THE Securities and Exchange Board of India (SEBI) has debarred DSQ Software Ltd (DSQ) and its Managing Director, Mr Dinesh Dalmia, from the securities market for 10 years.

The SEBI has also ordered DSQ and Mr Dalmia to deposit Rs 630 crore in a separate account in a nationalised bank within 45 days.

The escrow account, whose value is the average price of 1.3 crore scrips of DSQ, will be maintained till the completion of investigation by various police agencies including the Kolkata Police and the CBI, said the order.

The SEBI recently concluded its investigation into DSQ's irregularities in the allotment of 1.70 crore shares in 2000-2001.

Of these, the company introduced 1.3 crore shares in the secondary market without listing, according to the order.

The investigation also revealed that 30 lakh equity shares were placed in the Dinesh Dalmia Technology Trust, ostensibly for distribution as part of the Employee Stock Option Scheme.

These shares were not given listing permission by the BSE and the NSE, but were sold in the secondary market.

The order has instructed Mr Dalmia to buy 1.3 crore shares of DSQ from the secondary market within 45 days. These shares are to be retained in a separate demat account till permission for reduction of capital is obtained by the company.

Mr Mohammed Ghulam Ghouse, Mr B.K. Pal, Mr K.M. Venkateshwaran, and Mr V.M. Sundaram, other directors of DSQ, have also been prohibited from buying, selling or dealing in securities for five years.

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DSQ debarred from market for 10 years