sebi:WTM/KMA/OIAE/326/12/2010
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 directors Mr. G. W. Cockbill and Mr. Bhagubai Patel restrained from accessing the securities market and dealing in securities till pending investor grievances are resolved; show cause notices against Mr. Vimal Ambani, Mr. A.G. Puri, Mr. Harshad B. Patel, Mr. P.V. Gandhi, Mr. Madhav B. Patel and Mr. Vilas H. Doshi disposed of without directions; proceeding against Mr. B.R. Patel abates.
Provisions invoked
- s. 19
Parties
- Hindustan Industrial Chemicals Limited
- Mr. G. W. Cockbill
- Mr. Bhagubai Patel
- Mr. Vimal Ambani
- Mr. A.G. Puri
- Mr. Harshad B. Patel
- Mr. Vilas H. Doshi
- Mr. P.V. Gandhi
- Mr. Madhav B. Patel
- Mr. B.R. Patel
Holding
The Company, Hindustan Industrial Chemicals Limited, and its directors Mr. G. W. Cockbill and Mr. Bhagubai Patel are restrained from accessing the securities market and prohibited from dealing in securities until all pending investor grievances are resolved and confirmed by SEBI. The show cause notices against directors who had resigned (Mr. Vimal Ambani, Mr. A.G. Puri, Mr. Harshad B. Patel, Mr. P.V. Gandhi, Mr. Madhav B. Patel and Mr. Vilas H. Doshi) are disposed of without directions, and the proceeding against Mr. B.R. Patel abates due to his death.
Full text
Page 2 of 5 to resolve the pending investor grievances and to submit the Action Taken Report. Despite taking such steps, the Company failed to redress the investor grievances.
Page 3 of 5 November 21, 2009, submitted that he had resigned from the Company since April 10, 1998 and to support the same had enclosed copies of Form-32 and the Annual Report. From the said form, it is noted that Mr. Vilas H. Doshi had resigned on April 20, 1998.
Page 4 of 5 The Company and the other directors of the Company failed to attend the scheduled hearing. 5. I have considered the facts of the case and the available material on record. I note that sufficient opportunities have been provided to the Company to redress the pending investor grievances by SEBI since September 2008. However, the Company not only failed to resolve the pending investor grievances but also failed to submit its response on any action taken by them in resolving such complaints. There are one hundred and ninety two complaints pending against the Company as stated in the letter dated September 25, 2008. The protection of the investors in the securities market is one of the paramount duties of SEBI and the present case involves a listed company that not only failed to redress the investors’ grievances but also failed to even respond to the letters/show cause notice issued by SEBI. In view of the above, I do not have hesitation in holding the Company responsible for not redressing the investor grievances. The directors of the Company who are in charge and are responsible for the affairs of the company are also responsible for such failure. As stated above, Mr. Vimal Ambani, Mr. A.G.Puri, Mr. Harshad B. Patel and Mr. Vilas H. Doshi have resigned from the Company as mentioned in their letters and supported by relevant documents. Therefore, they cannot be held responsible for the inaction of the Company in redressing the investor grievances, as alleged in the s
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/KMA/OIAE/326/12/2010. 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.