sebi:CO/171/IMD/10/2003

SEBI · SEBI · 2002-10-14 · G.N. Bajpai, Chairman

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Company and its six 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

• Indo Biotech Herbal Remedies Ltd.
• Dilip Dahanukar
• Swaminath S. Hanchate
• Sunil Bambharkar
• Chaitanya D Mehta
• Vishwajit B. Dahanukar
• Suresh P. Madhav

Holding

In exercise of powers under Sections 11(1) and 11(4)(b) read with Section 11B of the SEBI Act, Indo Biotech Herbal Remedies Ltd. and its six named directors were directed to dissociate themselves from the securities market for a period of 5 years and not deal in securities in any manner whatsoever for 5 years.

Full text

them within a period of one month from date of the order. The company was also informed vide the said order that in case of failure to redress investor grievances, the following actions would be initiated against them without further notice: 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. 4.0 The company failed to redress the grievances of investors within the time specified in the order dated 14.10.2002. 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. The company was represented during the hearing and they made

5.3 The mandate of SEBI as laid down in the SEBI Act is to protect the interest of investors and to promote the development of and to regulate, the securities market and for matters connected therewith or incidental thereto. Further, vide Section 11(1) of the SEBI Act, it is the duty of SEBI to protect the interest of investors in securities and to promote the development of and to regulate, the securities market, by such measures as it thinks fit. 6.0 The company has failed to redress the grievances of investors despite being directed to do so by SEBI. Therefore, it is necessary in the interest of investors to issue directions to the company Therefore, in exercise of the powers conferred on me vide Sections 11(1) and 11(4) (b) read with Section 11B of the SEBI Act, I hereby direct that Indo Biotech Herbal Remedies Ltd. and its directors viz. Dilip Dahanukar, Swaminath S. Hanchate, Sunil Bambharkar, Chaitanya D Mehta,* Vishwajit B. Dahanukar, Suresh P. Madhav 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. This order shall come into force immediately. G.N. BAJPAI Place : Mumbai CHAIRMAN Date : 10th Oct, 2003 SECURITIES AND EXCHANGE BOARD OF INDIA

submissions. 5.0 I have considered the facts of the matter and material on record. I note that adequate opportunity has been granted to the company. Therefore, I proceed with the matter. 5.1 I note that as on 31.3.2002, a total of 52 complaints were pending against the company and when the company was directed to meet officials of SEBI in this regard, they failed to do so and also failed to redress the grievances of investors. 5.2 I also note that the company failed to comply with the order dated 14.10.2002 directing them to redress the grievances of investors. As on 27.8.2002, a total of 5 grievances remained not redressed.

Source: SecMarx — sebi:CO/171/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.