Money Matters stk split record date axed

Money Matters has cancelled the record date for sub-division,or split,of its equity shares.

Money Matters Financial Services,whose top officials have been arrested by the CBI in the housing finance bribery case,today said it has cancelled the record date for sub-division,or split,of its equity shares.

8220;The board have passed the resolution for cancellation of the Record date December 27,2010 for the sub division of equity shares,8221; Money Matters said in a filing to the Bombay Stock Exchange.

It said the board at its meeting on Saturday decided to cancel the record date,which determines shareholders8217; eligibility for receiving split stocks.

On November 12,the board had approved the sub division of shares in the ratio of 1:2 or one share of face value of Rs 10,to two shares of Rs 5 each.

The company8217;s shares had touched all time high of Rs 787 on October 29,2010. The scrip has been hitting the lower limit for the past five days,ever since the involvement of its top officials in the bribery-for-loans case came into light. The scrip closed 10 per cent lower at Rs 309.90 today.

Yesterday,the company had said that the issue proceeds of Rs 445 crore from share sale to institutional investors has been kept in bank fixed deposits and would not be withdrawn without the board8217;s approval.

Last month,the company raised Rs 445 crore by selling shares to qualified institutional investors QIPs. It sold over 71 lakh shares,at Rs 625 a piece,to a clutch of investors,including some from overseas.

Story continues below this ad

Money Matters said its board met last week to take stock of the situation arising out of the arrest of the company8217;s CMD Rajesh Sharma and CFO Suresh Gattani on charges of bribery on November 24.

Further,the board has also constituted a committee for the interim period to make available the payment of salaries to staff and other day to day expenses.

A chartered accountant by profession,Sharma,was the key man behind the meteoric rise of Money Matters Financial Services. He was the promoter-chairman of the company.

Last week,CBI arrested eight officials from several banks and financial institutions on charges of bribery,in return for sanctioning loans.