sebi:CO/163/IMD/10/2003
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Facts / Headnote
Company and its three directors directed to dissociate from the securities market and not deal in securities for 5 years
Provisions invoked
- s. 11B
- s. 11(1)
- s. 621
Parties
- Dharnendra Industries Ltd
- Mr. Navinchandra B. Gandhi
- Mr. Dharmendra B. Gandhi
- Mr. Bhupendra B. Gandhi
Holding
Dharnendra Industries Ltd and its directors Mr. Navinchandra B. Gandhi, Mr. Dharmendra B. Gandhi and Mr. Bhupendra B. Gandhi shall dissociate from the securities market and shall not deal in securities in any manner for 5 years for failure to redress investor grievances.
Full text
a) Prosecution under section 621 of the Companies Act b) The company and its directors would be debarred from dealing in and/or accessing the capital market for a period of 5 years.
Sections 11(1) and 11(4) (b) read with Section 11B of the SEBI Act, I hereby direct that Dharnendra Industries Ltd and its directors namely Mr. Navinchandra B. Gandhi, Mr. Dharmendra B. Gandhi and Mr. Bhupendra B. Gandhi shall dissociate themselves from the securities market for a period of 5 years and that the aforesaid persons shall not deal in securities in any manner whatsoever for a period of 5 years. This shall be without prejudice to the right of SEBI to take any other appropriate action against the company under the provisions of the SEBI Act and the Companies Act, 1956.
4.0 The company failed to redress the grievances of investors within the time specified in the order dated 14.10.2002. The company vide their letter dated 18.11.2002 informed that they have submitted details of redressal of investor complaints which were pending as per records of the company to SEBI vide their letter dated 6.9.2001. They also submitted that as per their records, no complaint of any investor is pending. Subsequently, though it was not required to do so, SEBI vide letter dated 9.5.2003, granted an opportunity to be heard before me. The hearing was fixed for 31.5.2003; however, the company failed to appear before me and make submissions in this regard.
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Source: SecMarx — sebi:CO/163/IMD/10/2003. 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.