sebi:WTM/SEBI/MPB/ISD/39/2018
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Representation disposed of; no directions issued by SEBI in respect of JAL at present.
Provisions invoked
- s. 11(1)
Holding
SEBI's letter dated August 7, 2017 was not applicable to JMD Alloys Ltd. (JAL), as the letter had no application to companies exclusively listed on CSE and JAL had been compulsorily delisted from BSE effective December 24, 2016. No directions are required to be issued by SEBI in respect of JAL at present.
Full text
Order in respect of JMD Alloys Ltd. Page 2 of 12 (b) Misusing their respective books of accounts/funds including facilitation of accommodation entries to the detriment of minority shareholders and reneging on the fiduciary responsibility cast on the board, promoters and Key Management Persons.
Order in respect of JMD Alloys Ltd. Page 3 of 12 subject matter for consideration in the present order. In the said list, the status of JAL was shown as “suspended” since March 21, 2014.
Order in respect of JMD Alloys Ltd. Page 4 of 12 exchanges to identify the companies listed on their trading platform and initiate specific measures mentioned therein. b. The company is shocked and surprised by the said notice, wherein behind our back you have declared us a “shell company”, which is in gross violation of principles of natural justice. The said notice does not disclose the parameters based on which we have been declared a shell company. The said letter has been issued without conducting an investigation and without following the legal process. Further, the letter is without mentioning the legal provisions relevant for such identification. c. JAL submitted its background since its incorporation, its business details and also mentioned the long pending legal disputes which it had with the electricity department because of which JAL’s net worth eroded. d. It also mentioned that due to its bad financial position, the loans taken from Central Bank of India could not be repaid in time due to which the matter was reported to BIFR. Subsequently, the company’s management opted for one time settlement with Central Bank of India to permanently clear the dues. e. JAL also provided the following details for three financial years i.e. 2013-14, 2014-15 and 2015-16: Revenue from operations Income Tax Returns Electricity Payments Number of employees. Statutory payments such as Sales Tax, Excise duty and Service tax
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Source: SecMarx — sebi:WTM/SEBI/MPB/ISD/39/2018. 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.