Odisha Cement has said that mutual fund units worth ₹344 crore have been illegally transferred from the demat account of two of its former subsidiaries and that the company has reported the matter to SEBI. The company has also filed a criminal complaint with the Economic Offences Wing in New Delhi.

Demat accounts

“We wish to inform you that certain mutual fund units, valued at approx. ₹344 crore, have been illegally and unauthorisedly transferred by the depository participant from the demat account(s) held by our erstwhile subsidiaries, OCL India Limited and Dalmia Cement East Limited,” Odisha Cement said in a stock exchange statement on Thursday. “We have already reported the matter to National Securities Depository Limited, National Stock Exchange and other appropriate authorities including SEBI,” it added.

According to the company, investigation has already been initiated by SEBI and appropriate action, including keeping the transfer or redemption of the mutual fund units on hold, has been taken. Incidentally, the company statement comes a day after the capital markets regulator passed an interim order against stock broker Allied Financial Services for alleged irregularities, including transferring shares held by OCL India and Dalmia Cement East to unregistered clients.

“The member [Allied Financial Services] has transferred the mutual funds units belonging to unregistered entities / client to its client beneficiary account through its three associated concerns viz. Money Mishra Financial Services, Awanish Kumar Mishra and Money Mishra Overseas Pvt. Ltd,” the order by SEBI whole-time member Ananta Barua said.

“It is further observed that these transferred mutual fund units have been used as collateral for F&O margin with its clearing member IL&FS Securities Services Ltd. towards trade obligations of these three associated concerns,” it added.

More importantly, SEBI has barred the broker and the other three entities among others from accessing the stock market and further directed the depositories to ensure no debits are made in their demat accounts.