Safety of shares at stake?

LAW and ORDER A housewife in Madurai, who wanted to sell her shares worth Rs. 2500000 when the sensex rose, was shocked to know that these were already sold and encashed, says S. Vijay Kumar Can shares be sold and encashed without the knowledge of the shareholder? If your answer is no, you are probably wrong. A housewife in Madurai, who wanted to sell her shares worth Rs. 2500000 when the sensex rose, was shocked to know that the shares were already sold and encashed. Further enquiries revealed that a fictitious person opened a bank account in her name at a private bank in Virudhunagar. The suspect obtained duplicate share certificates and sold them. It was during May 2005 when the alleged fraud took place and the victim, S. Mallika (50) of Anna Nagar has been running from pillar to post since then seeking an explanation from the stock broking company and other related agencies. When repeated representations yielded no relief, she approached the city police who registered a cheating case against five organisations including the private bank. Can a bank account be opened in a false name with forged documents? Are not Permanent Account Number (PAN) card, residence proof, bank passbook, employment or business certification required to open a Demat account? If these formalities are observed strictly, how could Ms. Mallika's shares be sold and the money transferred into a fictitious account? While investigators are trying to find answers to these questions, the complainant is still in a state of shock. The original share certificates she had sent to a private securities firm for dematerialisation were retained since duplicate certificates were already issued and sold. After making several representations to the Securities and Exchange Board of India (SEBI), she sent a complaint to the Director General of Police, Tamil Nadu, seeking relief and criminal action against the suspects. Sleuths of the City Crime Branch are investigating the case.