sebi:WTM/KMA/OIAE/377/04/2011
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Facts / Headnote
Restrained Aashi Industries Limited and its directors Mr. Puri Dilipkumar, Mr. Jhaveri A. Dhaval and Ms. Jhaveri D. Seema from accessing the securities market; show cause notices against Mr. Mor Jayesh and Mr. Rajan S. Shah disposed of without directions; proceedings against Mr. Vaidyeswaran Narayan terminated.
Provisions invoked
- s. 19
- s. 15C
Parties
- Aashi Industries Limited
- Mr. Puri Dilipkumar
- Mr. Jhaveri A. Dhaval
- Ms. Jhaveri D. Seema
Holding
SEBI restrained Aashi Industries Limited and directors Mr. Puri Dilipkumar, Mr. Jhaveri A. Dhaval and Ms. Jhaveri D. Seema from accessing the securities market and from buying, selling or otherwise dealing in securities, directly or indirectly, with immediate effect, until all pending investor grievances against the Company are resolved and confirmed by SEBI. Show cause notices against Mr. Mor Jayesh and Mr. Rajan S. Shah were disposed of without directions, and proceedings against Mr. Vaidyeswaran Narayan were terminated.
Full text
Page 2 of 5 days from the date of this notice, SEBI shall be constrained to take actions against these companies and their Directors, including initiating adjudication proceedings as per Section 15C of the SEBI Act or any other action as deemed appropriate in accordance with the provisions of SEBI Act. Despite the letter and the public notice, the Company or its directors failed to submit any response.
Page 3 of 5 4. Thereafter, an opportunity of hearing was granted to the Company and its directors by SEBI on August 5, 2010. As the show cause notices issued to the Company and few of its directors had returned undelivered from the last known address, a copy of the same along with the notice of hearing was sent for pasting as a substitute service of the notice. A paper publication was made by SEBI on June 13, 2010, in respect of the said show cause notice and hearing in various newspapers having nationwide and statewide circulation including ‘Hindustan Times’ (Mumbai, New Delhi & Kolkata Editions) ‘LokSatta’ (Mumbai Edition) ‘Sandesh’ (Rajkot Edition) and ‘Gujarat Samachar’ (Vadodara Edition). Subsequently, Mr. Rajan S. Shah, vide letter dated June 18, 2010 submitted that he came know of the proceeding against him in the matter through a public notice published by SEBI in the daily newspaper Loksatta for appearance in the personal hearing scheduled on August 5, 2010. He further stated that he had resigned from the Company in the year 1994 and requested SEBI for a copy of the show cause notice as he did not receive the same as the address was incorrect. Thereafter, M/s. R.T. Rajguroo & Associates, company secretaries, on behalf of Mr. Rajan S. Shah vide letter dated June 23, 2010 submitted a copy of Form-32 to support the claim that Mr. Rajan S. Shah had resigned from the Company on December 19, 1993 and further submitted that he has no relationship of whatsoever nature in the
Page 4 of 5 Mr. Jhaveri A. Dhaval and Ms. Jhaveri D. Seema have submitted that they have resigned from the Company and did not submit any proof in that regard, SEBI vide letters dated December 14, 2010 advised them to furnish proof of resignation and to submit copies of Form-32 filed with the RoC by December 24, 2010. They were further informed that if they fail to submit documents, their claim may not be considered. However, inspite of receipt of the said letters from SEBI, they chose not to furnish any proof of their resignation from the Company. Mr. Puri Dilipkumar has not responded to the show cause notice, despite public notice and substituted service by pasting.
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Source: SecMarx — sebi:WTM/KMA/OIAE/377/04/2011. 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.