sebi:WTM/KMA/OIAE/421/07/2011
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Facts / Headnote
Proceedings initiated vide show cause notices dated November 6, 2009 and November 11, 2009 disposed of without any directions, with advice to the company to strictly redress investor grievances in future without fail or delay.
Provisions invoked
- s. 19
Parties
- Pioneer Embroideries Limited
- Mr. Mahesh A Singhi
- Mr. Dev Raj Mehta
- Mr. Raj Jawaraj Sekhani
- Mr. Hemant Kumar Sethia
- Mr. Vijay Hanumanmal Baid
- Mr. Manak Hanumanmal Baid
Holding
The proceedings initiated against Pioneer Embroideries Limited and its directors under Sections 11B and 11(4)(b) were disposed of without any directions after all pending investor grievances were reported as redressed. The company was advised to strictly redress all future investor grievances without fail or delay.
Full text
Page 2 of 4 3. Thereafter, a notice dated November 6, 2009 was issued by SEBI under Sections 11B and 11(4)(b) of the SEBI Act to the Company requiring it to show cause as to why it should not be restrained from accessing the securities market and prohibit it from dealing in securities till such time the pending investor grievances against the Company are resolved. Similar show cause notices dated November 11, 2009 were also sent to its directors, Mr. Hemant Kumar Sethia, Mr. Vijay Hanumanmal Baid, Mr. Manak Hanumanmal Baid, Mr. Mahesh A Singhi, Mr. Dev Raj Mehta and Mr. Raj Jawaraj Sekhani. Except Mr. Hemant Kumar Sethia and Mr. Manak Hanumanmal Baid, no other directors acknowledged the receipt of the said notice. Mr. Manakchand Baid, vide letter dated November 20, 2009 informed SEBI that he had already resigned from the directorship of the Company on September 25, 2004 and that he was not working with the Company since then. In support of his resignation, Mr. Manak Hanumanmal Baid submitted copy of Form 32 submitted to the Registrar of Companies, Maharashtra, Mumbai. Thereafter, an opportunity of personal hearing was granted by SEBI to the Company, on August 5, 2010. Since the show cause notices and the personal hearing were being returned undelivered from the last know addresses, a paper publication was made by SEBI on June 13, 2010, in respect of the said show cause notices and notices for personal hearing, in various newspapers having nationwide and statewide circulation
Page 3 of 4 4. Thereafter, on August 5, 2010, the Company was represented by Mr. N. K. Jain, CFO & Company Secretary, Mr. Uday Nemlekar, Senior Executive and Mr. Sanjay Dholakia, Practising Company Secretary. The representatives of the Company submitted that forty five out of the fifty seven complaints were resolved by the Company. They also stated that in the remaining twelve complaints either the folio number or the address of the shareholder was not correct and therefore, the Company was not in a position to resolve the said complaints. In view of the above, it was requested to drop the proceedings. In the meanwhile, SEBI had also received a letter dated August 2, 2010 from the Company, the contents of which are similar to the submissions made by the representative. The Company was advised by SEBI, vide letter dated March 16, 2011 to inform the current status of 14 pending complaints (pending as on the said date). In reply to the said letter, the Company, vide letter dated March 21, 2011 forwarding the action taken report of only 8 complaints. On further follow up with the Company, it had submitted the redressal report for another 3 investor complaints. Further, the Company, vide letter dated May 13, 2011 has requested for some more time to gather the current status of the remaining 3 complaints. After much pursuance, the Company has submitted the final action taken report on June 28, 2011 and according to which all the pending investor grievances has been redressed, but o
Page 4 of 4 Companies, Maharashtra, Mumbai. In view of the above, no liability can be fixed on Mr. Manakchand Baid for the fault committed by the Company subsequent to such resignation. A copy of the Annual Report filed by the company with Registrar of Companies, Maharashtra has been received and it is observed that other than Mr. Manakchand Baid, Mr. Hemant Kumar Sethia, and Mr. Vijay Hanumanmal Baid has also resigned from the directorship.
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Source: SecMarx — sebi:WTM/KMA/OIAE/421/07/2011. 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.