February 02, 2006
PR No. 72/2006

M/s. Consortex Karl Doelitzsch (India) Ltd. and its Directors, debarred

Securities and Exchange Board of India (SEBI) vide order dated February 1, 2006 has confirmed the following directions already issued through an ad interim order dated September 29, 2005, in the matter of M/s. Consortex Karl Doelitzsch (India) Ltd. (Formerly Andhra Pradesh Power Tools Ltd):

  1. Corsortex Karl Doelitszsch (India) Ltd., formerly known as Andhra Pradesh Power Tools Ltd. and its directors are directed not to issue any further shares or alter its share capital in any manner till further directions. The company and its directors viz. Shri M.Sudhakar Rao, Shri V.Manohar, Shri K.Satyanarayan, Shri S.Surya Prakasa Rao and Shri G.Krishna Mohan are prohibited from accessing capital market or dealing in securities, in any manner, directly or indirectly, till further orders in this regard by SEBI.

  2. Ikon Vision Pvt. Ltd., Registrar and Share Transfer Agent is hereby directed not to transfer shares of M/s.Consortex held by the above mentioned directors directly or indirectly till further directions.

  3. APIDC (A corporation of Government of Andhra Pradesh) is directed to retain all the original share certificates of M/s.Consortex in its possession in safe custody. They are also directed not to part with any of the shares till further directions of SEBI.

SEBI received a complaint dated September 5, 2005 from APIDC stating that the request of APIDC for dematerialization of their full holdings of 8 lakh equity shares held in physical form , which were submitted to the Share Transfer Agent of Consortex , namely, Ikon Vision Pvt., Ltd., (Ikon) through UTI Securities Ltd., Hyderabad , the Depository Participant for APIDC was rejected. In the said complaint preferred to SEBI, APIDC also alleged that Consortex had indulged in fraudulent practice through dematerialization of their shares prior to December 2002.
The information so far collected by SEBI has revealed that while APIDC continues to hold 8,00,000 shares in physical form, another set of share certificates bearing the same distinctive numbers i.e. fake share certificates might have been issued by Consortex, thus committing a major offence.. Hence, SEBI, in the interests of the investors and safety and integrity of the securities market, had issued the above directions through an ex-parte ad interim order dated September 29, 2005. Subsequently, after giving an opportunity to make oral and written submissions to Consortex, SEBI has confirmed the directions contained in the ad interim order, as above.

February 2, 2006



For full copy of order, click here.