DSQ Software raises eyebrows

DSQ Software raises eyebrows
ENS ECONOMIC BUREAU

Kolkata, March 26: DSQ Software Ltd of the Dalmia group continues to raise eyebrows. It has decided to give loans of Rs 287 crore of which Rs 79 crore will go to the associate companies, Rs 84 crore to three broking firms with Calcutta Stock Exchange trading cards and Rs 124 crore to three more firms, one of which is a broking outfit.

Managing director Dinesh Dalmia of DSQ Software is interested in this special resolution, according to the explanatory statement to a notice to its shareholders on the forthcoming 8th annual general meeting on March 29.

The loan to three broking firms with trading operations on the Calcutta Stock Exchange has raised eyebrows as DSQ Software counter was one of the worst hit during the recent stock market meltdown.

At the AGM in Chennai on March 29, the management will seek shareholder approval to ratify the decision of its board to advance loans to these firms.DSQ Software touched a low of Rs 116.25 on the National Stock Exchange on March 22, from Rs 254.65 on March 8. In Kolkata too, the scrip skidded to Rs 114.10 at the CSE on March 22, from Rs 250 on March 8. During this period, the scrip had hit the circuit-filter on several days.

This special resolution on advancing loans especially to the three broking firms is felt to be “unusual” among Kolkata’s broking circle. In fact, one of the defaulting CSE brokers, Harish Chandra Biyani, along with his firm Biyani Securities Ltd had received 10.5 lakh odd DSQ Sotfware shares in his account.

Elders at the exchange noted that it is surprising that a chunk of 10.5 lakh odd shares of DSQ Software suddenly came into Biyani’s account. They felt that the matter should be probed.Three broking firms Accord Capital Ltd, Mehta & Ajmera and Titan Stock Broking Pvt Ltd will be getting Rs 54 crore, Rs 25 crore and Rs 5 crore respectively. In addition to this, another outfit Woodstock Securities Ltd will be given Rs 20 crore by the DSQ management.

Director GS Mehta of Accord Capital, one of the broking firms to be get loans from DSQ Software, was not available for comment. In fact, Mehta did not attend the Calcutta Stock Exchange’s sub-committee meeting where 10 entities were declared defaulters.