sebi:CO/258/IGG/10/2002
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Facts / Headnote
Direction issued to IBH to redress pending investor grievances within one month, failing which SEBI would initiate prosecution and impose a 5-year capital market ban
Provisions invoked
- s. 11B
- s. 73
- s. 621
Regulations
- Reg. 30A
Parties
- Indo Biotech Herbal Remedies Limited
- Directors of Indo Biotech Herbal Remedies Limited
Holding
SEBI directed Indo Biotech Herbal Remedies Limited to redress the 53 pending investor grievances within one month from the date of the order, failing which SEBI would initiate prosecution under Section 621 of the Companies Act, 1956 and debar IBH and its directors from accessing the capital market for 5 years.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ DIRECTIONS UNDER SECTION 11B OF THE SEBI ACT, 1992 TO INDO BIOTECH HERBAL REMEDIES LTD., MUMBAI & ITS DIRECTORS Securities and Exchange Board of India (SEBI) has received several complaints from investors against Indo Biotech Herbal Remedies Limited (hereinafter referred to as IBH) over a period of time. The same were forwarded to IBH for redressal. As on September 30, 2002, IBH has a total of 53 investor grievances pending against it. On failure to redress the pending investor grievances by IBH, SEBI vide letter dated April 3, 2002 advised IBH to meet SEBI's officials in connection with redressal of investor's grievances pending against it. However, IBH failed to remain present. Subsequently, SEBI vide letter dated May 24, 2002 called upon IBH 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 IBH 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 IBH. Now, therefore, in exercise of the powers conferred upon me under Section 11B of the SEBI Act, 1992, I hereby direct IBH to redress the investor's grievances pending against IBH within a period of one month from the date of this order failing of which SEBI would be constrained to initiate actions as
Sections 11B & 27 of SEBI Act, 1992 read with Section 621 of the Companies Act, 1956 should not be initiated against IBH 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 IBH. Now, therefore, in exercise of the powers conferred upon me under Section 11B of the SEBI Act, 1992, I hereby direct IBH to redress the investor's grievances pending against IBH 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:
Order against Indo Biotech Herbal Remedies Limited Oct 14, 2002 | Orders : Orders of Chairman/Members CO/258/IGG/10/2002 SECURITIES AND EXCHANGE BOARD OF INDIA
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Source: SecMarx — sebi:CO/258/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.