sebi:WTM/PS/117/CFD/DEC/2015
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Facts / Headnote
Directions issued vide the interim order dated June 04, 2013 against J. R. Organics Limited, its directors, promoters and promoter group confirmed; order to remain in force till further directions.
Provisions invoked
- s. 19
- s. 81
- s. 21
- s. 3(1)
- s. 12A
Parties
- J. R. Organics Limited
- its directors
- promoters
- promoter group
Holding
SEBI confirmed the directions issued vide the interim order dated June 04, 2013 against J. R. Organics Limited, its directors, promoters and promoter group for continuous non-compliance with minimum public shareholding (MPS) norms. The Company's reliance on pending BIFR proceedings under SICA was rejected as a ground for exemption from MPS compliance.
Full text
Page 2 of 5 (a) The Company has been registered with the Board for Industrial and Financial Reconstruction (BIFR), New Delhi vide Reference No. 72/2012 dated December 05, 2012. The Company has been declared as a ‘sick industrial company’ under section 3(1)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985 (‘SICA’) vide Order dated November 06, 2003.
Page 3 of 5 5. The Company’s representative has stated that the Company has been declared as “sick” by the BIFR and further stated that he has moved the BIFR for deregistration of the Company from the purview of the SICA . He has also referred to the Order of the Hon’ble High Court directing BIFR to dispose of the application filed for such de-registration. In this regard, I note that the Company has not submitted (with proof) that the BIFR has granted/allowed relaxation from the complying with the requirements of the MPS norms. The order dated November 06, 2013 declaring the Company as ‘sick’ does not grant exemption from compliance with the MPS norms and had inter alia directed the Company to prepare draft rehabilitation scheme and restrained it from disposing off its assets without prior approval of the BIFR. From the perusal of the proceedings dated September 23, 2015 of the BIFR (latest as seen from BIFR’s website, accessed on November 13, 2015), it is seen that the application for de-registration has not yet been ordered. Further, there is no co-relation with the pendency or disposal of such application with the present proceedings for non-compliance with the MPS norms.
Page 4 of 5 and rules 19(2)(b) and 19A of the SCRR. In response to such prayer, SEBI vide reply filed before BIFR has inter alia submitted that –
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Source: SecMarx — sebi:WTM/PS/117/CFD/DEC/2015. 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.