sebi:CO/252/IGG/10/2002
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Facts / Headnote
Directions issued to redress pending investor grievances within one month, failing which prosecution and debarment to follow without further notice
Provisions invoked
- s. 11B
- s. 73
- s. 621
Regulations
- Reg. 30A
Parties
- Earnest Healthcare Limited
- Directors of Earnest Healthcare Limited
Holding
EHL was directed to redress the investor grievances pending against it within one month from the date of the order, failing which SEBI would initiate prosecution and debar EHL/its directors from the capital market for 5 years without further notice.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ Order against Earnest Healthcare Limited Oct 14, 2002 | Orders : Orders of Chairman/Members CO/252/IGG/10/2002 SECURITIES AND EXCHANGE BOARD OF INDIADIRECTIONS UNDER SECTION 11B OF THE SEBI ACT, 1992 TO EARNEST HEALTHCARE LTD., INDORE & ITS DIRECTORS Securities and Exchange Board of India (SEBI) has received several complaints from investors against Earnest Healthcare Limited (hereinafter referred to as EHL) over a period of time. The same were forwarded to EHL for redressal. As on September 30, 2002, EHL has a total of 59 investor grievances pending against it. On failure to redress the pending investor grievances by EHL, SEBI vide letter dated April 3, 2002 advised EHL to meet SEBI's officials in connection with redressal of investor's grievances pending against it. However, EHL failed to remain present. Subsequently, SEBI vide letter dated May 24, 2002 called upon EHL to show cause as to why appropriate action/proceedings under 17416 24 9 1. 2. 3. 4. 5. 6. 7. 1
Sections 11B & 27 of SEBI Act, 1992 read with Section 621 of the Companies Act, 1956 should not be initiated against EHL 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 EHL. Now, therefore, in exercise of the powers conferred upon me under Section 11B of the SEBI Act, 1992, I hereby direct EHL to redress the investor's grievances pending against EHL 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:
1. Prosecution under Section 621 of the Companies Act, 1956 for the alleged violation of the provisions of Section 73 and 113 of the aforesaid Act. 2. EHL/its directors would be debarred from dealing in and/or accessing the capital market for a period of 5 years. Place : Mumbai Date : October 14 , 2002 G. N. BAJPAI Chairman Securities and Exchange Board of India CO/252/IGG/10/2002
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Source: SecMarx — sebi:CO/252/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.