sebi:WTM/KMA/OIAE/378/04/2011
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Facts / Headnote
AEC Enterprises Limited and its directors restrained from accessing the securities market and prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, till all pending investor grievances are resolved and confirmed by SEBI; show cause notices against Mr. V. Saminathan and Mr. Navneet Kampani disposed of without directions.
Provisions invoked
- s. 11B
- s. 19
Parties
- AEC Enterprises Limited
- Mr. Dinesh Sharma
- Mr. G. P. Sharma
- Mr. Vikram V. Desai
- Mr. Sanjeev R. Apte
- Mr. R. D. Apte
- Mr. V. Swaminathan
- Mr. V. Saminathan
- Mr. Navneet Kampani
Holding
SEBI restrained AEC Enterprises Limited and its directors from accessing the securities market and dealing in securities until all pending investor grievances are resolved and confirmed by SEBI. The proceedings against Mr. V. Saminathan and Mr. Navneet Kampani were disposed of without directions as they had resigned from the board in 1999.
Full text
Page 2 of 6 by registered post returned with a remark “company closed”. In view of the same, 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 such steps, SEBI had not received any response from the Company or its directors.
Page 3 of 6 submitted that it had come to know of the proceedings through the public notice and submitted that the Company had suffered on account of a takeover bid and subsequent litigations. Mr. Sanjeev R. Apte, the director, submitted that as the situation improves, they would revive the Company. It was further submitted that the Company would collect the investor grievances from SEBI and write to them on similar lines for the investors to know of the Company’s situation.
Page 4 of 6 enclosed postal confirmations regarding the letters sent by registered post. As the said letter enclosed only the postal communication and as no action taken report was submitted, SEBI vide letter dated October 8, 2010, directed the Company to redress the grievances within 7 days and to submit a report as per the proforma enclosed therewith. In reply, the Company vide letter dated October 23, 2010 submitted a copy of the letter sent to the 73 shareholders stating the inability of the Company to redress the complaints due to financial problems. The Company merely enclosed a report which in the action taken column mentioned “letter sent” and postal acknowledgements for having sent the letters by registered post to such investors. In this regard, it is noted that majority of those complaints pertain to transfer of shares involving no monetary burden on the Company. Further, some complaints pertain to the period 2001 onwards which has remained unresolved for a very long period of time. Although a period 2 months was given to the Company to redress the complaints, the Company has not redressed any of the complaints and has merely issued letters to such investor.
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Source: SecMarx — sebi:WTM/KMA/OIAE/378/04/2011. 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.