sebi:8186
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Facts / Headnote
Proceedings dropped
Provisions invoked
- s. 11B
- s. 19
- s. 27
- s. 73
- s. 621
Parties
- Shri. Mahesh Parikh
- Shri. Shalin A. Shah
- Shri. Ashok C. Shah
- Ms. Shivani Ashok Shah
Holding
The proceedings against Shri. Mahesh Parikh, Shri. Ashok C. Shah, Shri. Shalin Ashok Shah and Ms. Shivani Ashok Shah, directors of M/s Lesha Steels Ltd., were dropped.
Full text
(Under Section 11B of the Securities and Exchange Board of India Act, 1992 against (1) Shri. Mahesh Parikh, (2) Shri. Shalin A. Shah, (3) Shri. Ashok C. Shah and (4) Ms. Shivani Ashok Shah, Directors of M/s Lesha Steels Ltd.) DATE OF HEARING: 17.04.2007 APPEARANCES: FOR COMPANY: Shri. Mahesh Parikh Shri. Shalin A. Shah representing himself and the directors 3 and 4 above. FOR SEBI: Shri. Jeevan Sonparote, DGM, SEBI Shri. Mohamed Rahaz P.M., Legal Officer, SEBI 1.0
be taken against them under Section 11B and 27 of the Securities and Exchange Board of India Act, 1992 read with Section 621 of the Companies Act, 1956 for violation of Section 73 and 113 of the Companies Act, 1956. The company had not replied to the said show cause notice nor did it correspond with SEBI in this regards. Vide order dated October 14, 2002, SEBI directed the company and its directors to redress the grievances of the investors within a period of one month from the date of the order, failing which SEBI would be constrained to pass a restraining order on the company and its directors. An opportunity of personal hearing was granted on May 31, 2003. Based on the request of the company, another hearing was granted on July 09, 2003 which was not availed and thus culminating into an order dated October 10, 2003 directing the company and its directors namely Shri. Shalin Ashok Shah, Ms. Shivani Ashok Shah, Shri. Ashok C. Shah, Shri. Jasvant Ray P. Shah, Shri. Ramesh K. Gupta, Shri. J. S. Varshnay and Shri. Mahesh Parikh to dissociate themselves from the securities market for a period of 5 years. 1.2 Subsequent to the Order, Shri. Mahesh Parikh filed Appeal No. 361 of 2004 before the Hon’ble Securities Appellate Tribunal (hereinafter referred to as “SAT”) against the said order on the ground that no show cause notice was issued to him by SEBI in his personal capacity as a director and that he was not a director of the company at the relevant time. The Hon’ble SAT vide or
2.0 Show Cause Notices and replies 2.1 Pursuant to the said orders of the Hon’ble SAT, show cause notice dated January 25, 2006 was issued to Shri. Mahesh Parikh and show cause notices dated April 19, 2006 were issued to Shri. Ashok C. Shah, Shri. Shalin Ashok Shah, and Ms. Shivani Ashok Shah advising them to show cause as to why appropriate action / proceedings under Section 11B and Section 27 of Securities and Exchange Board of India Act, 1992 read with Section 621 of the Companies Act, 1956 should not be initiated against them for the violations of Section 73 and 113 of the Companies Act, 1956. The directors viz Shri. Ashok C. Shah, Shri. Shalin Ashok Shah, and Ms. Shivani Ashok Shah, sought inspections of documents annexed in the show cause notice and the same was carried out by Shri. Shalin Ashok Shah on behalf of all the directors on December 19, 2006. 2.2 Shri. Mahesh Parikh in his reply dated November 22, 2006 amongst other things stated as follows: 2.2.1 He was appointed as an Additional Director (Professional & Non – Executive) of the company on August 31, 1993 and the said appointment was confirmed at the Company’s AGM on December 21, 1993. 2.2.2 He resigned as a Director of the Company on March 15, 1993 and the same was also confirmed by the Company in its Annual Report for the year 1995-1996. He has quoted the following from the said Annual Report: Shri Mahesh B Parikh, Director of the Company has resigned on 15th March 1996 due to pre-occupation.
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Source: SecMarx — sebi:8186. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.