December 19, 1997
PR No. 167/1997

Boom Securities and Leasing Ltd.
Investigation Enforcement And Surveillance Dept.

M/s. Boom Securities & Leasing Ltd. (BSLL), of Ahmedabad, came out with a public issue of 22,70,000 equity shares of Rs.10/- each for cash at par, on April 4, 1996. The investigations were conducted to look into the alleged irregularities relating to subscription of the public issue of BSLL. The investigations brought out that subscription received during the public issue in effect were substantially less than the minimum required subscription of 90%. The actual subscription received was not more than 42% of the total offer to the public. It was also noticed that issue was subscribed with certain stock invests which were discovered to be fake and were reportedly lost. The listing was obtained for the issue without getting the stock invests realised. Pursuant to investigations, a show cause notice was issued to the company and it was asked to show cause why the proceeds of the public issue should not be refunded. A personal hearing before the Chairman was also granted to the company. On perusal of material on record and submissions made from time to time by the company, Chairman, SEBI came to the conclusion that the company has not genuinely achieved the minimum subscription of 90% offered to the public. In view of this, Chairman, SEBI has directed that in the interests of the investors and the fairness of the securities market the issue proceeds be refunded to the original applicants. Where the original applicant has sold the shares, the last holder should be given the face value of the shares.