sebi:WTM/KMA/OIAE/336/12/2010
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Facts / Headnote
Restrained the company and its directors from accessing the securities market and dealing in securities till pending investor grievances are resolved and confirmed by SEBI
Provisions invoked
- s. 19
Parties
- Prakash Fortan Softech Limited
- Mr. P. C. Jain
- Mr. Rajesh Jain
- Mr. Rakesh Jain
Holding
SEBI restrained Prakash Fortan Softech Limited and its directors Mr. P.C. Jain, Mr. Rajesh Jain and Mr. Rakesh Jain from accessing the securities market and from buying, selling or otherwise dealing in securities directly or indirectly until all pending investor grievances are resolved and confirmed by SEBI. The order was made effective immediately.
Full text
Page 2 of 4 status report. In the said letter, SEBI made a reference to Sections 15C and 24 of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as the SEBI Act). The said letter, sent to the company by registered post, was returned undelivered. 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 steps, SEBI had not received any response from the Company or its directors.
Page 3 of 4 said hearing scheduled on August 5, 2010. 4. I have considered the facts of the matter and the material available on record. The number of investor complaints pending against the Company, as per the letter of SEBI dated September 25, 2008 was one hundred and twenty four complaints. 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 give 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 also responded to the letters/show cause notice issued by SEBI. Therefore, it would be against the interests of the investors to permit such a company and its directors to access or deal in the securities market. In view of the above, I find it appropriate to issue necessary direction against the Company and its aforesaid directors who are in charge and responsible for the affairs of the company for their failure to redress the grievances of the investors.
Page 4 of 4 (Permanent Account Number-ABAPJ 2869 B) and Mr. Rakesh Jain 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 aforesaid 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/336/12/2010. 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.