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Sebi bars DSQ Soft, promoter from accessing capital market

The Securities and Exchange Board of India on Friday directed DSQ Software Ltd to cancel acquisition of US-based Fortuna Technologies and barred the company from accessing the capital market for a period of one year or completion of investigation and action thereupon, whichever is later.

Dinesh Dalmia, DSQ managing director, has also been prohibited from dealing in securities for a period of one year or completion of investigation and action thereupon, whichever is later, Sebi said in its order.

Madras-based DSQ was to allot its 14 million equity shares valued at Rs 9.59 billion at Rs 685 per share to three Mauritius-based companies as part of acquiring Fortuna, Sebi said.

The transaction was not genuine and the company should cancel acquisition being done on swap basis after following the procedure laid down under the Companies Act, Sebi added.

The market regulator was of prima facie opinion that conduct of DSQ in takeover of Fortuna Technologies from T C Ashok was likely to erode investor confidence and integrity of the capital markets, Sebi said.

DSQ and Dinesh Dalmia and/or their representatives have been given an opportunity of post decisional hearing, it added.

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