sebi:WTM/KMA/OIAE/399/07/2011
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Facts / Headnote
Restrained the company and its director 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. 15A
- s. 15
- s. 15C
Parties
- Enkay Texofood Industries Limited
- Mr. Harinarayan Sharma
Holding
SEBI restrained Enkay Texofood Industries Limited and its director Mr. Harinarayan Sharma from accessing the securities market and dealing in securities until all pending investor grievances are resolved and confirmed by SEBI.
Full text
Page 2 of 6 advising them to resolve all the investor grievances and to submit a status report within seven days. Since no reply was received from either the company Secretary or the Managing Director, another reminder was again sent to them by SEBI on December 19, 2008. Although all the letters sent either to the Company Secretary or the Managing Director was acknowledged, and since no reply was received, 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 letter dated February 20, 2010. As the notices could not be delivered on Mr. Harinarayan Sharma, copies of the show cause notice and the notice for hearing were pasted on the premises of the last known address of the said director. On the date of the hearing, Ms. Savita Singla (practicing Company Secretary) appeared on behalf of the Company and made submissions. During the course of hearing, the Company was advised to redress the investor grievances and submit an action taken report within a period of one month. Thereafter, pursuant to a request from the Company, SEBI vide letter dated September 14, 2010 forwarded copies of the 259 complaints (out of 309 complaints pending as on the date of the said letter). With respect to the remaining 50 complaints, the Company was informed of the names of the complainants and their addresses and was advised to contact them for redressing their complaints. The said SEBI letter also informed the Company that the time to redress the complaints and to submit an action taken report has been extended to October 18, 2010. Thereafter, the Company, vide letter dated October 13, 2010 submitted that out of the 259 complaints, it had resolved 38 complaints and enclosed the details of the action taken. The Company also submitted that it had informed 50 complainants to forward their complaints to its registered office for redressal and submitted that it was in the process of redressing the remaining complaints. In this regard, it is noted t
Page 4 of 6 certificates instead of the originals and for the purpose, has forwarded the indemnity bond and affidavit to the respective shareholders. It further undertook that after receipt of the said documents, it would issue fresh duplicate share certificates in physical form. The Company further submitted that it has satisfactorily resolved 38 complaints with respect to “dividends”. The Company, vide its letter dated December 6, 2010, had also enclosed copies of the communication it had with a few of the complainants. Thereafter, vide letter dated December 11, 2010, the Company informed SEBI that it had issued duplicate share certificates to those shareholders who had submitted indemnity bonds and affidavits. However, it failed to submit any proof of redressing such complaints as required under SEBI Circular OIAE/Cir-1/2009 dated November 25, 2009 and the erstwhile Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000 (since rescinded). Thereafter, SEBI vide letter dated March 16, 2011 reminded the Company to submit the current status of redressal. However, inspite of receiving such advice from SEBI, the Company failed to respond or submitted any action taken report.
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Source: SecMarx — sebi:WTM/KMA/OIAE/399/07/2011. 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.