sebi:NP/JR/29/2017
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Facts / Headnote
SCN disposed of without imposition of penalty
Provisions invoked
- s. 15
- s. 19
- s. 11(1)
- s. 15J
- s. 15C
Parties
- VIP Industries Limited
Holding
The SCN issued to VIP Industries Limited for failure to resolve an investor complaint within the specified time under SEBI Circular dated December 18, 2014 was disposed of without penalty.
Full text
Page 2 of 9 by SEBI to do so thereby violated the provisions Section 15C of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”).
Page 3 of 9 “It has been alleged that one complaint filed by Mr. Chiranjilal Vyas (hereinafter referred to as the Complainant) has not been resolved within the specified time in terms of SEBI Circular dated 18th December, 2014. We state and submit that the stated complaint has been resolved and the Discharge Letter dated 7th November, 2016 from the Complainant relieving the Company from all allegations is annexed hereto as Annexure A. We humbly submit that the non resolution of the complaint within the time frame of one month was unintentional and beyond the Company’s choice to conclude.
Page 4 of 9 However, after Notice of Motion was dismissed by the Court, the Registrar & Share Transfer Agent, Link In Time India Pvt. Ltd. Accidently issued 700 Bonus shares of Blow Plast Ltd. To Mr. Rajvirchand Bhandari, the original seller instead of the Complainant. The Company has taken the onus of this mistake and is willing to compensate the Complainant by offering 3500 shares of the Company in lieu of 700 shares of erstwhile Blow Plast Ltd. (700 Bonus Shares of Blow Plast Ltd. Of Rs.10/- each which after split have become 3500 shares of Rs.2/- each of VIP Industries Ltd.) The Company acknowledges the right of Complainant over the Bonus shares issued by Blow Plast Ltd. However, the Complainant is also claimimg right entitlement pertaining to rights issue made by Blow Plast Ltd. As during the time of rights issue the shares were under objection and the transfer was not affected, the name of complainant was not entered into records either and thereby the entitlement to subscribe to the rights shares also lapsed accordingly. The Company is willing to settle the matter and proposes to negotiate with the Complainant.
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Source: SecMarx — sebi:NP/JR/29/2017. 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.