New Delhi, Jul 8 (PTI) Markets regulator Sebi on Wednesday barred share transfer agent Sharepro Services Pvt Ltd, its three senior officials and 24 other entities from the securities market in a matter related to diversion of assets.

Apart from the firm, others who have been restrained from accessing the securities market include managing director of the firm Govind Raj Rao and Indira Karkera, who is vice-president and client manager for a number of client companies of Sharepro.

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Sharepro, its senior officials and two other individuals have been restrained from accessing the securities market for 10 years, while the other entities face ban ranging from 3 years to 7 years.

The directive came after an investigation found that Sharepro and its top management in collusion with various other entities facilitated diversion of assets (securities and dividend) belonging to genuine and rightful shareholders to entities related to management of Sharepro.

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Besides, records were not maintained properly and there was deliberate falsification of records to blur the audit trail. Internal checks and balances were compromised to a high degree. Various entities actively connived with the top management and also substantially benefitted from the scheme of fraud. During the probe, certain entities were found to be linked with each other and with the management of Sharepro.

"The fraud committed by Sharepro and its senior management is massive in proportion and has very wide ramifications in the securities market," Sebi said.

Sebi found that Sharepro, G R Rao and Indira Karkera were the main players behind the fraud involving illegal siphoning off of dividends and misappropriation of shares facilitated through compromise of internal checks and balances in RTA's systems, non-adherence to due procedures and falsification of records of records, among others. The other entities were involved in the fraud either directly or indirectly.

For violating various market norms during the process, Sebi has barred the firm and the entities from accessing the securities market for varying periods.

Sebi in 2016 and 2017 had passed orders against certain entities barring them from accessing the securities market for their involvement in misappropriation of assets.

Therefore, those who have already remained prohibited since March 2016, period of prohibition already undergone by them is set off against the period of restraint imposed on them through the order passed on Wednesday, Sebi said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)