Order in respect of Solid Carbide Tools Limited and its directors Mr. Dilip Suresh Shah, Mr. Narendra C Doshi and Mr. Mukhesh M Kothari
- Order No.WTM/RKA/OIAE/20/2013
Ratio decidendi
The rule this decision rests on
A restraint imposed under sections 11(4)(b) and 11B of the SEBI Act, prohibiting a company and its directors from dealing in securities until pending investor grievances are redressed and reported to and confirmed by the regulator, lapses once the Board is satisfied that every grievance that caused the direction has been redressed and that no complaint against the company is pending on SCORES. The continuance of the restraint depends on that condition, so it ceases when the condition is met. Where the grounds for a direction issued under section 11B no longer subsist, the Board may, in the interest of justice, revoke that direction in exercise of its powers under section 19 read with sections 11(4)(b) and 11B.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
WTM/RKA/OIAE/20/2013 BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA CORAM: RAJEEV KUMAR AGARWAL, WHOLE TIME MEMBER ORDER In respect of Solid Carbide Tools Limited and its directors Mr. Dilip Suresh Shah, Mr. Narendra C Doshi and Mr. Mukhesh M Kothari 1. The Securities and Exchange Board of India (hereinafter referred to as 'SEBI'), vide Order dated April 8, 2011, restrained Solid Carbide Tools Limited (hereinafter referred to as the 'Company') and its directors, Mr. Dilip Suresh Shah, Mr. Narendra C Doshi and Mr. Mukhesh M Kothari from accessing the securities market and prohibited them from buying, selling or otherwise dealing in securities, directly or indirectly, till all the pending investor grievances against the said Company are resolved and the same is reported to and confirmed by SEBI. The said direction was issued as it was found that the Company had failed to redress pending investor grievances. The Company has now reported that it has redressed all the pending investor grievances. SEBI has examined the submissions of the Company and is satisfied that the Company has redressed all the pending complaints. It is also placed on record that there are no pending complaints against the Company reported in SEBI Complaints Redress System (SCORES) as on April 12, 2013. Thus, it is noted that the Company has resolved all pending investors' complaints that were the cause for the issuance of the directions vide Order dated April 8, 2011, as well as other complaints, if any, against it as on April 12, 2013. Therefore, it would be in the interest of justice to discontinue the directions issued against the Company and its directors, vide Order dated April 8, 2011. 2. In view of the above, I, in exercise of the powers conferred upon me under Section 19 of the Securities and Exchange Board of India Act, 1992 read with Sections 11(4)(b) and 11B thereof, hereby revoke the directions issued against Solid Carbide Tools Limited (having its registered office at Plot R-402, T.T.C. Industrial Area, Rabale, Navi Mumbai – 400 701) and its directors, Mr. Dilip Suresh Shah, Mr. Narendra C Doshi and Mr. Mukhesh M Kothari, vide Order dated April 8, 2011. 3. Copies of this Order shall also be served on the stock exchanges and depositories to enable them to take necessary steps for ensuring due compliance with this Order.
RAJEEV KUMAR AGARWAL DATE: May 10th, 2013 WHOLE TIME MEMBER PLACE: MUMBAI SECURITIES AND EXCHANGE BOARD OF INDIA
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