Leading share registrars Link Intime and Karvy Computershare are in the race to acquire rival Sharepro Services, which is under a regulatory ban over alleged fraudulent deals. Link and Karvy executives are to meet Securities and Exchange Board of India (Sebi) officials early this week to discuss the matter. Sebi last week barred Sharepro, its promoters and directors from the capital markets and asked all companies to switch their activities to other registered share transfer agents after it found lapses. The Mumbai-based company had diverted shares and dividends belonging to rightful shareholders to entities related to the management of Sharepro, Sebi said in its ex-parte interim order. Within minutes of Sebi’s order on Tuesday, Sharepro managing director GR Rao sent a text message to his counterpart at Link seeking his help in a smooth transition for clients and employees. Both companies will be entering a formal business arrangement after consulting ebi, sources said. Sharepro is learnt to have informed its clients that it would ensure proper transfer of all data. “Sebi is scheduled to have a meeting with Link Intime and also with Karvy on exploring ways to address the crisis at Sharepro,” said a person familiar with the development. Link Intime and Karvy Computershare are keen on the Sharepro’s registry business given its corporate clientele. Such a move would help consolidate the acquirer’s position in the market.
Source: Economic TimesLink Intime, Karvy Computershare in fray to buy Sharepro.
Industry: Financial services 2016-03-28