SMS Pharmaceuticals Investigates Fraudulent Claim of Physical Shares; Complaint Filed with Economic Offences Wing

SMS Pharmaceuticals Investigates Fraudulent Claim of Physical Shares; Complaint Filed with Economic Offences Wing​

SMS Pharmaceuticals Limited has initiated legal action following the discovery of a large-scale fraudulent activity involving the physical shares of its company. The company stated that it received a request from a shareholder who held shares in physical form, which led to an inquiry into KYC documentation submitted through the Registrar and Share Transfer Agent (RTA).

Upon verifying the documents provided, SMS Pharmaceuticals observed that the shares had already been claimed by another individual impersonating the original shareholder. The company subsequently launched a detailed investigation into the transfer records relating to these fraudulent claims.

The preliminary review confirmed that certain documents submitted by the impersonated claimant(s) appeared forged and fabricated for the purpose of fraudulently claiming shares belonging to genuine shareholders. Investigators noted that similar types of documents were repeatedly used, and the addresses of the impersonated claimants were either identical or located in nearby areas, suggesting a common modus operandi used for these fraudulent transfers.

A total of 85,000 equity shares in physical form, which belonged to seven original shareholders, were identified as having been claimed using this deceptive method over a period of time. The matter was immediately reviewed by the Stakeholders Relationship Committee and the Board of Directors of SMS Pharmaceuticals Limited.

The company's Stakeholders Relationship Committee advised that police action should be initiated against those involved in the fraudulent transactions to safeguard the interests of genuine shareholders.

In compliance with this advice, SMS Pharmaceuticals has filed a complaint before the Economic Offences Wing (EOW), Central Crime Station (CCS) in Hyderabad. Following their preliminary inquiry, a case has been registered for further investigation.

The company remains committed to protecting its shareholders' interests and will pursue all appropriate legal measures regarding this incident.

SMSPHARMA Stock Price Movement​

SMS Pharmaceuticals Limited shares rallied today in post-market trading, finishing at ₹369.10 after gaining 4.48%. The equity saw a traded volume of 332,556 shares during the session, contributing to its strong closing performance.