sebi:CO/145/MIRSD/01/2005
Facts / Headnote
Directed to complete all pending dematerialization requests within one month with compliance report, failing which automatic 2-year restraint from securities market
Provisions invoked
- s. 19
Regulations relied on
- SEBI (Depositories and Participants) Regulations, 1996 — 53
- SEBI (Depositories and Participants) Regulations, 1996 — 54(5)
Parties
- Montari Industries Ltd.
Holding
Montari Industries Ltd. violated Regulation 53 read with Regulation 54(5) of SEBI (Depositories and Participants) Regulations, 1996 and was directed to complete all pending dematerialization requests within one month from receipt of order and submit compliance, failing which it shall stand automatically restrained from accessing the securities market and prohibited from buying, selling or dealing in securities for 2 years.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ Order Against Montari Industries Ltd Jan 27, 2005 | Orders : Orders of Chairman/Members SECURITIES AND EXCHANGE BOARD OF INDIA
2. Thereafter, SEBI issued a show cause notice dated 09.02.04 to Montari Industries Ltd. 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 Montari Industries Ltd. 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/145/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.