order in the matter of Mazda Enterprises Limited
- Order No.WTM/RKA/EFD/DRA-II/56/2016
Ratio decidendi
The rule this decision rests on
A direction under section 11B of the SEBI Act restraining a listed company from the securities market is not warranted where the investor complaint that founded the show cause notice has since been resolved and disposed of, so the notice is disposed of without such a direction. A listed company's continuing obligation to obtain SCORES authentication, as required by SEBI's circular, is not discharged by the resolution of a complaint. The company must obtain it within the time specified, failing which SEBI may initiate adjudication proceedings.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
WTM/RKA/EFD/DRA-II/56/2016
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 Mazda Enterprises Limited 1. Mazda Enterprises Limited (hereinafter referred to as ‘the company’) is a listed company incorporated under the Companies Act, 1956 having its registered office at 56, Free Press House 215, Nariman Point, Mumbai 400 021. 2. Securities and Exchange Board of India (SEBI) vide circular no. CIR/OIAE/1/2012 dated August 13, 2012 directed all companies whose securities are listed on stock exchanges, to obtain SEBI Complaints Redress System (SCORES) authentication by September 14, 2012 and to take appropriate necessary steps within seven days of receipt of complaints through SCORES, so as to resolve the complaint within thirty days of its receipt. 3. It was observed that Mazda Enterprises Limited had not obtained SCORES authentication and it had not redressed one investor grievance pending against it. Therefore, SEBI issued Show Cause Notice (SCN) dated March 28, 2013 to the company calling upon it to show cause as to why suitable directions including direction to restrain it from accessing the securities market for a specified period should not be issued under section 11B of the SEBI Act. 4. SEBI has verified and confirmed that the investor complaint which was subject matter of the SCN has been resolved and disposed of. 5. 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 Mazda Enterprises Limited as contemplated in the SCN issued to it. However, the company should obtain SCORES authentication within one month of this order failing which SEBI may take appropriate action including adjudication proceedings in accordance with law.
6. The SCN is accordingly disposed of.
Sd/- Date: May 24th, 2016 RAJEEV KUMAR AGARWAL Place: Mumbai WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
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