Order in respect of Pearl Engineering Polymers Limited and its directors
- Order No.WTM/RKA/EFD/103/2015
Ratio decidendi
The rule this decision rests on
Where a listed company's failure to redress an investor grievance within the period prescribed by the SCORES circular is cured before the show cause proceedings are decided, and no other investor complaint is pending on SCORES against it, the Board is not required to issue a direction under section 11B of the SEBI Act against the company or its directors. Whether such a direction is needed is judged by the company's compliance at the time of the decision, not by the earlier default alone.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
WTM/RKA/EFD/103/2015
BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA ORDER Under section 11B of the Securities and Exchange Board of India Act, 1992 in respect of (1) Pearl Engineering Polymers Limited, and its directors viz. (2) Mr. Harish Seth, (3) Mr. Mehra and (4) Mr. Brijesh Bansi Mathur 1. Pearl Engineering Polymers Limited (hereinafter referred to as ‘the company’) is a company incorporated under the Companies Act, 1956 having its registered office at Plot No. D-17, M.I.D.C., Kurkumbh, Tal. Daund, Pune – 413802. It has been observed from the website of Ministry of Corporate Affairs that there are three directors of the company namely, Mr. Harish Seth, Mr. Mehra and Mr. Brijesh Bansi Mathur (hereinafter collectively referred to as "directors"). 2. It was observed that the company obtained SCORES authentication but it had failed to redress investor grievances forwarded to them through SCORES. In terms of SEBI circular No. CIR/OIAE/1/2012 dated August 13, 2012, all listed companies were advised to take appropriate necessary steps within 7 days of receipt of complaint by the concerned company through SCORES, so as to resolve the complaint within 30 days of receipt of complaint and also to keep the complainant duly informed of the action taken thereon. 3. However, it was observed that one investor grievance was pending against the company for more than 30 days. Therefore, SEBI issued Show Cause Notices (SCNs) dated March 28, 2013 and April 26, 2013, to the company and its directors, respectively, calling upon them to show cause as to why suitable directions including direction to restrain them from accessing the securities market for a specified period should not be issued under section 11B of the SEBI Act. Replying to the SCNs, the company vide its letter dated April 15, 2013 submitted that the said pending investor grievance has been resolved and forwarded a copy of Action Taken Report. Further, SEBI has observed that there is no other investor complaint pending on SCORES against the company. 4. Considering the above facts and circumstances of the case, I am of the view that there is no need to pass any direction under section 11B of the SEBI Act, 1992 against Pearl Engineering Polymers Limited and its directors, as contemplated in the SCNs issued to them. The SCNs are accordingly disposed of.
Sd/- Date: August 11th, 2015 RAJEEV KUMAR AGARWAL Place: Mumbai WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
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