The Hindu Business Line : SAT orders compensation for DSQ Soft shareholders

THE Securities Appellate Tribunal (SAT) has directed SEBI to identify and compensate the buyers of unlisted shares of DSQ Software, which were sold in the open market in 2000.

DSQ Software had allotted more than one crore shares in 2000 which were not supposed to be listed, but were sold in the open market by the DSQ Software promoter, Mr Dinesh Dalmia, and his associates.

The SAT order said the shares would be bought back at the original purchase price only from those investors who had bought the unlisted shares during the May 20, 2000-January 12, 2001 period and continued to retain them at the time of tendering these shares.

The order has also directed Mr Dalmia to buy from the market (either at par or at market rate whichever is higher) the remaining unlisted shares of DSQ Software circulated in the secondary market as expeditiously as possible.

Mr Dalmia will have to fund this entire operation. For this purpose he has to deposit Rs 30 crore (minus the amount already deposited with SEBI) as a first instalment in an escrow account in a nationalised bank.

SEBI is to appoint an appropriate authority that will be entrusted with the task of identifying the shares that were not listed and were alleged to have been issued from May 20, 2000 to January 12, 2001 and introduced into the market by Mr Dalmia and his associates.

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