MUMBAI, Nov 21: Pankaj Hiralal Shah, a broker of the Bombay Stock Exchange (BSE) whose terminal has been switched off a couple of months ago on suspicion of his having introduced large quantities of fake/stolen shares in the market is likely to be declared defaulter, according to market sources.According to a BSE official, Shah had introduced about 4,000 shares of ITC in the market some months ago. The BSE later declared this as bad delivery as these shares were stolen. The BSE authorities have already handed over the case to the Mumbai police for further investigation.On Thursday night, a senior BSE official insisted that broker was being declared a defaulter. While the BSE has been silent about this, the market is rife with rumours that the problem created runs into several crores of rupees.According to market sources, shares worth nearly Rs 10-12 crore were stolen from the subsidiary of a public sector bank. This firm has already reported the matter to the stock exchange and the police. Nearly8,000 of these stolen shares were later introduced in the market. However, the exchange detected this and stopped delivery of the stolen shares. It also suspended the trading rights of the broker.``The exchange has so far not taken any formal action against the broker fearing bad publicity.Now that there is conclusive proof, the exchange is likely to declare this broker as defaulter. Stern action needs to be taken against those introducing fake and stolen shares in the market,'' said a broker.Once the exchange declares a broker as defaulter, the assets of the broker, including his membership card and deposits will be impounded and his liabilities will be adjusted.
