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Individual investors, FPIs, LIC to be restrained from transferring shares of Gitanjali Gems

Individual investors, foreign portfolio investors and LIC , among others , will be restrained from transferring shares of the beleaguered Gitanjali Gems.

This is because of an NCLT order that freezes all the moveable and immovable assets of 64 entities , including Nirav Modi and Mehul Choksi and their firms based on a PNB complaint to ministry of corporate affairs post the Rs 11400 crore fraud allegedly perpetrated by Nirav Modi-Choksi in collusion with certain bank staff.

Mehul Choksi , promoter holds 27.76% of Gitanjali Gems ' equity , FPIs including Morgan Stanley hold 10.23% , LIC (3.79%) and individual investors (25.62%) .

Section 221 of the companies act 2013 does not allow alienation of any assets while Sec 222 bars transference of any security as defined by SEBI .

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