October 14, 2009
PR No. 316/2009

SEBI cancels Certificate of Registration of Pinnacle Shares Registry Private Limited.

Dr. K. M. Abraham, Whole Time Member, SEBI has passed an order dated October 14, 2009 cancelling the certificate of Registration granted by SEBI to Pinnacle Shares Registry Private Limited [PSRPL] as registrar to an issue and a share transfer agent, with effect from February 28, 2010. During the intervening period, PSRPL shall not take on new clients in its business under the said certificate of registration.
All client companies of PSRPL are required to make alternate arrangements to avail the services of other registrars and share transfer agents registered with SEBI in respect of their share registry and transfer work. PSRPL shall also inform its client companies to make arrangements for appointment of another Registrar and Share Transfer Agent.
PSRPL has also been directed to hand over all the physical records and demat records pertaining to its client companies along with the database, after certifying for its integrity and correctness, under intimation to SEBI. PSRPL shall also issue a certificate to the depositories stating that the transfer of records have been completed satisfactorily and the same shall be done after the physical and electronic records are tallied by it with the share capital of the concerned issuer. PSRPL shall facilitate the smooth transfer from itself to other registered registrars and share transfer agents.

It may be mentioned here that pursuant to the receipt of complaints from the shareholders of Parsoli Corporation Limited (PCL) about the rejection of their dematerialization/share transfer requests, SEBI had conducted an inspection of the records of PSRPL, the Registrar and Share Transfer Agent of PCL. Thereafter, pursuant to a show cause notice and after affording an opportunity of hearing, SEBI, vide order dated February 20, 2009 had prohibited PSRPL from entering into any fresh agreements with client companies in its operations as registrar to the issue and share transfer agent till further orders.

The present Order dated October 14, 2009, inter�alia, states that PSRPL has paved the way for the fraudulent transfer of shares of the genuine shareholders of PCL to the accounts of promoters of PCL and their front entities. PSRPL had rejected the share transfer / dematerialization requests received from genuine investors of PCL on flimsy grounds suggesting the complicity of PSRPL in the fraudulent scheme designed for the fraudulent transfer of shares to the promoters of PCL/ their front entities . �The act of PSRPL is fraudulent, highly irregular, and improper. Thus, the fraudulent transfers of shares of the genuine holders are attributable to the PSRPL�, the order states.


October 14, 2009


For full copy of order against PINNACLE SHARES REGISTRY PVT.LTD. click here.