Sebi bans Sharepro, 15 others for illegal transfer for shares

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26 Aug, 2025 12:21

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Cracking the whip for illegal transfer of shares and dividend money of companies, Sebi today banned registrar and transfer agent Sharepro Services and 15 individuals from the securities market.

Sharepro Services (I) Pvt Ltd has been the registrar and share transfer agent for many top companies, including Britannia, Asian Paints, Tata Communications and Kansai Nerolac.

Besides imposing the ban on Sharepro and the 15 entities, the market watchdog has asked the companies concerned to carry out a "thorough audit" of the records and systems of Sharepro to ascertain whether the dividends have been paid to actual holders and whether securities have been transferred as per the law.

The ruling of the Securities and Exchange Board of India (Sebi) comes after it found that dividends and shares belonging to rightful investors were "transferred to the persons related to the management of Sharepro".

In his order, Sebi Whole Time Member Rajeev Kumar Agarwal said Sharepro Services and several entities linked with the management of the company have been barred from buying, selling or dealing in the securities market or associating themselves with securities market till further directions.

"Companies who are clients of Sharepro are directed to conduct a thorough audit of the records and systems of Sharepro with respect to dividends paid and transfer of securities to determine dividends have been paid to actual/beneficial holders and whether securities have been transferred as per the provision of the law," the order said.

The audit would cover the dividends paid/transfers effected within the preceding at least 10 years. The companies have bee asked to complete the audit in three months and report be submitted to the regulator.

Further, Sebi said the companies should take appropriate action within six months.

"Companies who are clients of Sharepro are also advised to carry out/ switchover their activities related to a registrar to an issue and share transfer agent, either in house or through another registrar to an issue or share transfer agent registered with Sebi," Sebi noted.

Passing the order, Agarwal said that since the conduct of Sharepro, its promoters, directors, Vice President and other entities do not prima facie appear to be in the interest of investors and the securities market, "necessary action has to be taken against them immediately, else it may lead to loss of investors' trust in the securities market".