sebi:WTM/SM/OIAE/IGRD/8407/2020-21
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Facts / Headnote
All four Noticees restrained from accessing the Securities Market; Noticees 3 & 4 given 365 days to obtain competent authority order rectifying MCA records regarding their claimed resignation
Provisions invoked
- s. 11B
- s. 19
- s. 141
- s. 138
- s. 303(2)
- s. 482
- s. 74(2)
Parties
- Raashi Fertilizers Ltd. (Noticee no. 1)
- Mr. Chandru Jaisingh Ramsinghani (Noticee no. 2)
- Mr. Shamlal Madanlal Khetan (Noticee no. 3)
- Mr. Jitendra Shantilal Mehta (Noticee no. 4)
Holding
The Noticee Company and its directors were held liable for failing to obtain SCORES authentication and redress pending investor complaints, and all four Noticees were restrained from accessing the Securities Market. Directors claiming resignation were not exonerated as they failed to prove their resignations were received and accepted by the company and reflected in MCA records.
Full text
Order in the matter of Raashi Fertilizers Ltd. Page 2 of 26 1. In the year 2011 Securities and Exchange Board of India (hereinafter referred to as “SEBI”) came up with an online portal/mechanism by the name, SEBI Complaints Redress System (hereinafter referred to as “SCORES”) in order to dispense a better, speedy and proper redressal of investors’ complaints pertaining to the listed companies. This mechanism enabled prompt online transmission of the investors’ complaints to the respective listed companies for redressal. Under the said system, the listed companies, after having received the complaints are required to take appropriate steps to resolve the complaints and upload their Action Taken Reports (hereinafter referred to as “ATR”) in SCORES for the benefit of the complainants. The companies can also upload the ATR by logging in to SCORES by using their SCORES authentication (consisting of user ID and password), which can be obtained by companies after submitting the necessary details to SEBI. Similarly, investors can also upload their complaints and check the status thereof from time to time by logging into SCORES by using their ID and password which they receive after registration with SCORES. The online grievance redressal system facilitates speedy disposal and redressal of investors’ grievances by the listed companies under close monitoring by SEBI.
Order in the matter of Raashi Fertilizers Ltd. Page 3 of 26 that failure to obtain SCORES authentication and to update the ATR in SCORES will be treated as non-redressal of investor complaint and in case of failure to comply with the above instructions, SEBI would be constrained to initiate appropriate actions as per law against such erring companies/entities.
Order in the matter of Raashi Fertilizers Ltd. Page 4 of 26 SCN. It is also observed that subsequently a SCN dated April 17, 2013 was issued to the three Directors of the Noticee Company, whereby again attention was drawn to the fact that the Noticee Company had not yet obtained SCORES authentication and that investors complaints continued to remain pending. It was further stated in the SCN that a public notice was also issued on January 13, 2013 whereby the Noticee Company was asked to obtain SCORES authentication within seven days from the date of the public notice cum advertisement, failing which SEBI would be constrained to take appropriate enforcement action.
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Source: SecMarx — sebi:WTM/SM/OIAE/IGRD/8407/2020-21. 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.