sebi:CO/142/MIRSD/01/2005
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Facts / Headnote
Directed to complete all pending dematerialization requests within one month from receipt of order and submit compliance report to SEBI, failing which automatic restraint from accessing the securities market and prohibition from buying, selling or dealing in securities for 2 years.
Provisions invoked
- s. 19
Regulations
- Reg. 53
- Reg. 54(5)
- Reg. 54
Parties
- Malvika Steel Ltd.
Holding
MSL violated Regulation 53 read with Regulation 54(5) and was directed to complete all 820 pending dematerialization requests within one month with compliance report, failing which it would stand automatically restrained from the securities market.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ Order Against Malvika Steel Limited Jan 27, 2005 | Orders : Orders of Chairman/Members SECURITIES AND EXCHANGE BOARD OF INDIA
days against Malvika Steel Ltd. (hereinafter referred to as “MSL”) as on December 12, 2003. 2. Thereafter, SEBI issued a show cause notice dated 09.02.04 to MSL advising it to show cause as to why action should not be initiated against it for violating the provisions of Regulation 53 read with Regulation 54(5) of SEBI (Depositories and Participants) Regulation, 1996 and the Depositories Act, 1996 for the delay in dematerialization.
7. In view of the above provisions of law, the issuer company was under an obligation to complete the process of dematerialization within the above stipulated period under the regulations. The conduct of MSL in keeping dematerialization requests pending for more than 30 days is detrimental to the interest of the investors/ shareholders in as much as the investors/ shareholders could not sell their shares at an opportune time. Thus it had deprived the share holders of the liquidity of their investments and loss of opportunity to sell the dematerialized shares.
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Source: SecMarx — sebi:CO/142/MIRSD/01/2005. 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.