sebi:CO/250/IGG/10/2002
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Facts / Headnote
Conditional direction to redress investor grievances within one month
Provisions invoked
- s. 11B
- s. 73
- s. 621
Regulations
- Reg. 30A
Parties
- Dharnendra Industries Limited
- Directors of Dharnendra Industries Limited
Holding
SEBI directed Dharnendra Industries Limited to redress its 129 pending investor grievances within one month, failing which prosecution and 5-year market debarment would follow without further notice.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ Order against Dharnendra Industries Limited Oct 14, 2002 | Orders : Orders of Chairman/Members CO/250/IGG/10/2002] SECURITIES AND EXCHANGE BOARD OF INDIA
Subsequently, SEBI vide letter dated May 23, 2002 called upon DIL to show cause as to why appropriate action/proceedings under Sections 11B & 27 of SEBI Act, 1992 read with Section 621 of the Companies Act, 1956 should not be initiated against DIL for the alleged violation of the provisions of Section 73 and 113 of the Companies Act, 1956. However, till date SEBI has not received any reply to the show cause notice from DIL. Now, therefore, in exercise of the powers conferred upon me under Section 11B of the SEBI Act, 1992, I hereby direct DIL to redress the investor's grievances pending against DIL within a period of one month from the date of this order failing of which SEBI would be constrained to initiate actions as under without giving any further notice:
DIRECTIONS UNDER SECTION 11B OF THE SEBI ACT, 1992 TO DHARNENDRA INDUSTRIES LTD., AHMEDABAD & ITS DIRECTORS Securities and Exchange Board of India (SEBI) has received several complaints from investors against Dharnendra Industries Limited (hereinafter referred to as DIL) over a period of time. The same were forwarded to DIL for redressal. As on September 30, 2002, DIL has a total of 129 investor grievances pending against it. On failure to redress the pending investor grievances by DIL, SEBI vide letter dated April 3, 2002 advised DIL to meet SEBI's officials in connection with redressal of investor's grievances pending against it. However DIL failed to remain present. Subsequently, SEBI vide letter dated May 23, 2002 called upon DIL to show cause as to why appropriate action/proceedings under Sections 11B & 27 of SEBI Act, 1992 read with Section 621 of the Companies Act, 1956 should not be initiated against DIL for the alleged violation of the provisions of Section 73 and 113 of the Companies Act, 1956. However, till date SEBI has not received any reply to the show cause notice from DIL. Now, therefore, in exercise of the powers conferred upon me under Section 11B of the SEBI Act, 1992, I hereby direct DIL to redress the investor's grievances pending against DIL within a period of one month from the date of this order failing of which SEBI would be constrained to initiate actions as under without giving any further notice:
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Source: SecMarx — sebi:CO/250/IGG/10/2002. 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.