Order in the matter of Millennium Cybertech Limited

WTM/RKA/EFD/DRA II/188/2016 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 Millennium Cybertech Limited and its directors namely, Mr. Satish Raval, Mr. Deepak Chanana, Mr. Mukesh Shah, Mr. Sanjay Savani, Mr. Jikesh Shah, Ms. Sushma Vimalkumar Raval, Mr. Chandulal Sanghavi and Mr. Visharl Kumar Shah 1. SEBI vide its circular no. CIR/OIAE/1/2012 dated August 13, 2012 directed all listed companies 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. 2. Though Millennium Cybertech Limited (hereinafter referred to as ‘the company’) did obtain SCORES authentication, failed to redress six investor grievances. SEBI issued Show Cause Notices (SCNs) dated March 28, 2013, April 26, 2013 and December 21, 2015 to the company and its directors, namely, Mr. Satish Raval, Mr. Deepak Chanana, Mr. Mukesh Shah, Mr. Sanjay Savani, Mr. Jikesh Shah, Ms. Sushma Vimalkumar Raval, Mr. Chandulal Sanghavi and Mr. Visharl Kumar Shah (hereinafter referred to as "the noticees") 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 passed under section 11B of the SEBI Act, 1992. The SCNs returned undelivered. 3. Notice to the effect of issuance of SCNs and granting of opportunity of personal hearing on October 05, 2016 was published in newspaper on September 11, 2016. However, the noticees chose not to appear for the personal hearing on the scheduled date. 4. I note that sufficient opportunities have been granted to the noticees and they are not keen to avail the same. I further note that the noticees have not even filed any written reply/submission to the SCNs. In view of these facts and circumstances, I deem it appropriate to decide the matter on the basis of material available on record.

In the matter of Millennium Cybertech Limited

5. I note that as on October 04, 2016 three investor complaints were pending against the company for redressal. 6. In addition to the obligations under the provisions of Companies Act, the company is also under an obligation to redress all investor complaints in terms of the advice/directions of SEBI, in view of the provisions of section 11 of the SEBI Act, 1992. However, the company has not shown any tenacity in resolving the investor grievances and in spite of repeated advice of SEBI, the said investor grievances are pending till date. 7. Failure to redress investor grievances, by a listed company adversely affects the confidence of investors in the securities market. In view of the foregoing, I am of the view that it is a fit case to issue appropriate directions under section 11B of the SEBI Act, 1992 against the noticees as contemplated in the SCNs. I, therefore, in exercise of the powers conferred upon me under section 19 of the SEBI Act read with sections 11 and 11B thereof, hereby restrain and prohibit Keshariya Spinners Limited its directors, namely, Mr. Satish Raval, Mr. Deepak Chanana, Mr. Mukesh Shah, Mr. Sanjay Savani, Mr. Jikesh Shah, Ms. Sushma Vimalkumar Raval, Mr. Chandulal Sanghavi and Mr. Visharl Kumar Shah from accessing the securities market and from buying, selling or dealing in securities, directly or indirectly, in whatsoever manner, till the company resolves all the investor grievances pending against it. The aforesaid direction is without prejudice to any other action that may be taken against the company and its directors in accordance with law. 8. This Order shall come into force with immediate effect. A copy of this Order shall also be served upon the depositories and stock exchanges for necessary action.

Sd/- Date: November 01, 2016 RAJEEV KUMAR AGARWAL Place: Mumbai WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA