December 02, 1997
PR No. 147/1997

Softrack Technology Exports Ltd.
Investigation Enforcement & Surveillance Dept.

M/s. Boom Securities & Leasing Ltd. (BSLL) came out with its public issue on April 4, 1996. M/s. Softrack Technology Exports Ltd. of Ahmedabad acted as Registrar to the Issue. The investigations were conducted by the SEBI to probe into various irregularities in respect to the public issue of BSLL. Investigations also brought out that the Registrar - M/s. Softrack Technology Exports Ltd. got the shares of BSLL listed prior to realisation of the stock invests. Investigations revealed that the Registrar also lost certain stock invests which were discovered to be 'fake'. Further, irregularities in despatch of shares to the successful allottees were found and it was noticed that stock invests were deposited in banks which were not authorised as collecting banks. Accordingly, an Enquiry Officer was appointed by the Chairman under the SEBI (Registrar to an Issue and Share Transfer Agents) Rules & Regulations, 1993. The Enquiry Officer submitted its report after hearing the Registrar. A showcause notice was issued to the Registrar informing the findings and recommendation of the enquiry officer and asking to showcause as to why action should not be taken. In view of the material on record, the reasons furnished by the Enquiry Officer and the Registrar neither replying to the showcause nor availing opportunity of personal hearing, Chairman, came to the conclusion that the Registrar has violated the provisions of the SEBI Act and the SEBI (Registrar to an Issue and Share Transfer Agents) Rules & Regulations, 1993. Chairman, SEBI, therefore, has passed an order suspending the Registrar for a period of one year with immediate effect.