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DCA orders trial against 84 firms in stock scam

The Department of Company Affairs has ordered prosecution against 84 companies involved in the stock market scam of 2001, including DSQ Software, First Global Stockbroking and Pentamedia Graphics, with a maximum punishment of five years' imprisonment.

"We had carried out inspections on 98 companies, of which 84 reports have come in as far as the stock market scam is concerned. In these 84 cases, DCA has ordered a total of 539 prosecutions," DCA secretary V K Dhall told reporters in New Delhi.

He said 13 of these prosecutions were ordered for serious offences committed during the scam, and these carry a maximum punishment of five years' imprisonment and fine, as would be decided by the court.

Besides the above three, the companies against which prosecutions have been ordered include Cyberspace, First Global Finance, Adani Exports, Vruddhi Con Finvest (part of First Global), Nirmal Bang Securities, Goldfish Computers, Nakshatra Software, Dolat Capital and Shailesh Shah Securities.

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