sebi:WTM/KMA/OIAE/328/12/2010
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Facts / Headnote
Restrained Akar Laminators Limited and its directors from accessing the securities market and from buying, selling or otherwise dealing in securities, directly or indirectly, till all pending investor grievances are resolved and reported to and confirmed by SEBI.
Provisions invoked
- s. 11B
- s. 19
Parties
- Akar Laminators Limited
- Mr. Hitesh Ravindra Shah
- Mr. Vinodbhai Tarachand Sheth
- Mr. Hasmukhbhai Tarachand Sheth
Holding
SEBI restrained Akar Laminators Limited and its directors (Mr. Hitesh Ravindra Shah, Mr. Vinodbhai Tarachand Sheth and Mr. Hasmukhbhai Tarachand Sheth) from accessing the securities market and dealing in securities until all pending investor grievances against the Company are resolved and confirmed by SEBI.
Full text
Page 2 of 4 sent to the Company (addressed to its company secretary) by SEBI on November 21, 2008 advising it to resolve the pending complaints and to submit the status report within seven days. It was also mentioned in the said letter that in case of failure, SEBI would initiate such actions as deemed appropriate. A similar letter was also sent to Mr. Hasmukhbhai Tarachand Sheth, Joint Managing Director of the Company. Though, the said letters were acknowledged, SEBI had not received any response either from the Company or from Mr. Hasmukhbhai Tarachand Sheth. Thereafter, the Company and Mr. Hasmukhbhai Tarachand Sheth were again advised by SEBI, vide letters dated December 19, 2008 to resolve the investor grievances. Despite acknowledging the said letters, the Company and Mr. Hasmukhbhai Tarachand Sheth not only failed to redress the grievances but also failed to respond to the letters of SEBI. Thereafter, a public notice was also given on January 23, 2009 in the website of SEBI (www.sebi.gov.in) advising the Company to resolve the pending investor grievances and to submit the Action Taken Report. Despite such letters and public notice, SEBI had not received any response from the Company or its Joint Managing Director.
Page 3 of 4 known address and no replies were received from them, a paper publication was made by SEBI on June 13, 2010, in respect of the aforesaid show cause notice and hearing in various newspapers having nationwide and statewide circulation including ‘Sandesh’ (Rajkot Edition) and ‘Gujarat Samachar’ (Vadodara Edition). Despite taking all possible measures, neither the Company nor its directors attended the said hearing on August 5, 2010.
Page 4 of 4 and Exchange Board of India Act, 1992 read with Sections 11(4)(b) and 11B thereof, hereby restrain Akar Laminators Limited and its directors, Mr. Hitesh Ravindra Shah, Mr. Vinodbhai Tarachand Sheth and Mr. Hasmukhbhai Tarachand Sheth from accessing the securities market and prohibit them from buying, selling or otherwise dealing in securities, directly or indirectly, till all the pending investor grievances against the Company are resolved and the same is reported to and confirmed by the Securities and Exchange Board of India.
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Source: SecMarx — sebi:WTM/KMA/OIAE/328/12/2010. 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.