Order in the matter of AEC Enterprises Ltd revoking the 11B directions passed against Shri Vikram
- Order No.WTM/RKA/OIAE/12/2014
Ratio decidendi
The rule this decision rests on
Where the company has confirmed that a person was never a director in his personal capacity but only a nominee director of another body, and his non-executive nominee tenure ended before the restraining order, the basis for directions under sections 11(4)(b) and 11B against him falls away, and SEBI may revoke those directions under section 19 of the SEBI Act.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
In respect of Shri Vikram Desai, Ex-Director, AEC Enterprises Ltd
1. The Securities and Exchange Board of India (hereinafter referred to as 'SEBI'), vide Order dated April 07, 2011, restrained AEC Enterprises Ltd (hereinafter referred to as 'the Company') and its directors including Shri Vikram Desai, 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 Company are resolved and the same is reported to and confirmed by SEBI.
2. Subsequent to the said Order, Shri Vikram Desai, Ex-director of the Company, vide a letter dated September 08, 2011, intimated that he was appointed as a nominee director by Technology Development and Investment Corporation of India ('TDICI') on the board of the Company in a non-executive capacity and he worked as a nominee director of TDICI from the year 1995 to 1998. In view thereof, he requested SEBI that the restriction imposed on him by the aforesaid SEBI order be disposed off without any directions.
3. A clarification regarding the tenure of directorship of Shri Vikram Desai was sought from the Company and the Company clarified that Shri Vikram Desai was never a director of the Company in his personal capacity but was merely a nominee director of TDICI for a period of 3 years from 1995 to 1998.
4. 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 vide Order dated April 07, 2011 against Shri Vikram Desai, Ex-director, AEC Enterprises Ltd (having its registered office at 221, Anarkali Complex, Jhandewalan Extension, New Delhi – 110055).
5. Copies of this Order shall also be served on the stock exchanges and depositories to enable them to ensure due compliance with this Order.
DATE: March 26, 2014 RAJEEV KUMAR AGARWAL PLACE:MUMBAI WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
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