sebi:WTM/KMA/OIAE/335/12/2010
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Facts / Headnote
Company and its three directors restrained from accessing the securities market and prohibited from buying, selling or otherwise dealing in securities till pending investor grievances are resolved
Provisions invoked
- s. 19
Parties
- D R Softech & Industries Limited (previously known as D R Industries Limited)
- Mr. Dhirubhai R. Desai
- Mrs. Manjulaben D. Desai
- Mr. Vasu Pushpan
Holding
The Company, D R Softech & Industries Limited and its directors, Mr. Dhirubhai R. Desai, Mrs. Manjulaben D. Desai and Mr. Vasu Pushpan, were restrained from accessing the securities market and prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, till all pending investor grievances against the company are resolved and the same is reported to and confirmed by SEBI.
Full text
Page 2 of 4 Board of India Act, 1992 (hereinafter referred to as the SEBI Act). The said letter which was sent to the Company by registered post was returned undelivered. Thereafter, a public notice was 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 and the public notice, the Company or its directors failed to submit any response.
Page 3 of 4 4. I have considered the facts of the case and the material available on record. According to the SEBI letter dated September 25, 2008, there are ninety four investor complaints pending unresolved by the Company. I note that sufficient opportunities have been provided to the Company and its directors to redress the pending investor grievances by SEBI, as stated above in this Order. However, the Company not only failed to resolve the pending investor grievances but also failed to provide any response on the action taken by it, if any, in resolving the complaints. The Action Taken Report was also not submitted by the Company. 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 respond to the letters/show cause notice issued by SEBI. None of the existing directors of the Company have also responded to the letters/notices issued by SEBI. Therefore, it would be against the interest of the investors and the securities market to permit such Company and its directors to access or deal in the securities market. In view of the above, I find it appropriate to issue necessary directions against the Company and its aforesaid directors who are in charge and responsible for the affairs of the Company, for the failure in redressing the grievances of the investors.
Page 4 of 4 is reported to and confirmed by the Securities and Exchange Board of India. 6. This Order shall come into force with immediate effect.
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Source: SecMarx — sebi:WTM/KMA/OIAE/335/12/2010. 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.