February 4: The Mumbai police is simplifying the process of filing an FIR for brokers in cases of forgery or theft of share certificates. This essentially would mean that the brokers would have to submit fewer documents while filing a complaint.The decision to evolve a convenient mechanism to speed up the investigative process was taken after a high-level meeting between Association of National Stock Exchange (NSE) Members of India (ANMI) and Police Commissioner R H Mendonca last week.
Speaking to Express Newsline, some brokers lamented that most police officers lack knowledge about share transactions and before filing a case they demand several unnecessary documents to prove the ownership and transaction of the share certificates which hinders the investigation. However, Mendonca maintained that the delays were because of complainants' inability to submit the required documents. He stressed that police officers dealing with such cases were well-trained, but added that workshops and seminars wouldbe soon held to deepen their insight into the issues.
According to Secretary General of ANMI Ishaq Merchant, brokers have to suffer heavy financial losses due to the delay in investigation and finalisation of FIRs by police officers. ``A high-level meeting is likely to be held with the Economic Offences Wing (EOW) next week for the formation of a special cell to deal with the problems at the earliest,'' he said.
Only those cases which involve a sum higher than Rs 20 lakh are registered in the EOW where the officers are knowledgeable. Other cases are filed in corresponding police stations where officers lack the relevant information, Merchant added. One broker pointed out that while prompt action is taken when currency is stolen, officials seem to be very casual about theft of shares which are as valuable as currency.
Assistant Police Commissioner (EOW) M R Dhurpude informed that there are 20 police inspectors, 10 assistant police inspectors and 30 sub-inspectors dealing with various cases of economicoffences in the EOW. ``They are well educated and trained to handle any economic crime,'' he said.
A police officer said that crimes related to introduction of fake and forged share certificates in the market, and theft of shares in transit and during buying and selling have become more sophisticated. These can be effectively handled only with the active cooperation of the Bombay Stock Exchange (BSE) and the NSE.
He further said that it would help officials if the police stations were provided with a format of the manner in which the complaints should be lodged.
Brokers will now be asked to produce the following documents at the police station for lodging complaints regarding forged/fake/ stolen shares sold to them:
The particulars of the person/client/sub broker who sold the said shares. The copy of an agreement executed between the broker and the client/sub-broker. The copy of contract notes regarding the said transactions duly counter signed/acknowledged by theperson/client/sub-broker, against whom the complaint is being lodged. The copy of bills indicating the amount of the said transactions. The mode of payment by the broker to the person/client/sub-broker. The document if any showing the limits fixed by the broker to allow sale/purchase of the shares to the person/client/sub-broker. The statement showing details containing delivery of shares, distinctive numbers of the said shares. The original share certificates in question along with its transfer deeds and if not available its xerox copies. The copy of a letter/certificate issued by the competent authority (objection memo) indicating that the said shares in question are forged/fake/stolen. Whether the shares in question were in the name of the person who sold it or otherwise. Whether the trading done by the broker/sub-broker is insured and if so, details thereof. The copy of delivery challan or slip. The statements indicating that the saidtransactions effected are confirmed by the concerned stock exchange.Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
