sebi:AO/BS/04/2009
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Facts / Headnote
Adjudication proceedings concluded with no penalty imposed; company directed to file a compliance report within 10 days with SEBI's Office of Investor Assistance and Education (OIAE).
Parties
- Hanil Era Textiles Ltd.
Holding
The adjudication proceedings against Hanil Era Textiles Ltd. for failure to redress investor grievances were concluded without imposing any penalty, on the basis of the Company's submissions before the Securities Appellate Tribunal that it had resolved the investor complaints and its production of copies of confirmation letters sent to the 470 complainants.
Full text
2 3. The Company was granted an opportunity of hearing on January 25, 2005. The Company vide its letter dated January 25, 2005 stated that it had not received the SCN and requested for time. The Company was further granted an opportunity of hearing on February 11, 2005. This hearing was further postponed to March 16, 2005. The Company failed to attend the said hearing and one more opportunity of hearing was granted to the company on May 27, 2005. The Company again failed to attend the hearing and a fresh date was granted to the Company on June 28, 2005. The Company submitted a letter dated June 28, 2005 stating that it had not received any letter granting them an opportunity of being heard except the last. It further stated that it did not have a copy of the SCN. A fresh hearing notice was sent to the Company on July 5, 2005 granting it an opportunity of being heard on July 20, 2005. In its reply dated July 19, 2005 the Company sought more time and was granted an opportunity of being heard on August 10, 2005. Since the Company failed to appear after repeatedly being granted hearing, an order was passed against the Company dated November 21, 2005, imposing a fine of Rs. 10 lakhs on the Company for failure to redress investor grievances. The Company challenged the said
3 complaints. The company had further contended that the majority of the complaints pertained to non redemption of debentures. In this regard the company had stated that it had rescheduled and pre paid the said debentures. The company was asked to submit the proof of redressal of grievances of the investors. In this regard, the Company was specifically required to obtain written confirmation from the investors that their complaints have been resolved. The Company was granted 15 days time to produce proof and material in support of the contentions.
4 Company sent letters on 01/09/2007 to all 470 complainants by Under Certificate of Posting seeking their confirmation that their complaints have been resolved. The Company further submitted that it has not received any response from the concerned parties pursuant to individual communication. The company has submitted copies of Certificate of posting in respect of its contentions. On the basis of submissions made by the representatives of the Company, the Company was directed to file detailed compliance report alongwith copies of letter sent to the investors within 10 days. The Company was advised to mention the nature of complaint, action taken on the complaint and letters addressed to the individual investors.
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Source: SecMarx — sebi:AO/BS/04/2009. 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.