Order in the matter of Pix Transmissions Ltd.
- Order No.WTM/RKA/OIAE/101/2014
Ratio decidendi
The rule this decision rests on
Where a listed company's failure to redress an investor grievance has been cured by redressal before the SCN is decided, the Board may, on considering the facts and circumstances of the case, decline to pass a direction under section 11B against the company and its directors, and may instead dispose of the show cause notices with an advisory to take utmost care and vigilance in future redressal of investor grievances.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Under section 11B of the Securities and Exchange Board of India Act, 1992 in the matter of Pix Transmissions Ltd.
In respect of Pix Transmissions Ltd., Mr. Darshansing Gurumukhsing Chadha, Mr. Joe Moolan Paul, Mr. Pradeep Mahadeorao Havnur, Mr. Sukhpal Singh Sethi, Mr. Jose George Jacob, Mr. Sonepal Sethi, Mr. Om Prakash Arora, Mr. Karanpal Sethi, Mr. Amarpal Sethi, Mr. Haresh Bhagwandas Eidnani, Mr. Rishipal Sethi. 1. Pix Transmissions Ltd. (hereinafter referred to as 'Pix') is a company incorporated under the Companies Act, 1956 having its registered office at Pix Transmissions Ltd., J-7, MIDC, Hingna, Nagpur - 440016 Maharashtra. The shares of Pix are listed on Bombay Stock Exchange Ltd. (BSE). It has been observed from the website of Ministry of Corporate Affairs that there are eleven directors of Pix, namely, Mr. Darshansing Gurumukhsing Chadha, Mr. Joe Moolan Paul, Mr. Pradeep Mahadeorao Havnur, Mr. Sukhpal Singh Sethi, Mr. Jose George Jacob, Mr. Sonepal Sethi, Mr.Om Prakash Arora, Mr. Karanpal Sethi, Mr. Amarpal Sethi, Mr. Haresh Bhagwandas Eidnani and Mr. Rishipal Sethi.
2. Pix obtained SCORES authentication on May 11, 2012 but failed to redress the investor grievance (1 nos). As the complaint was pending for more than two years, SEBI issued Show Cause Notices (SCNs) dated March 28, 2013 and April 26, 2013 to Pix and its directors, respectively, calling upon them to show cause as to why suitable directions including the direction to restrain them from accessing the securities market for a specified period should not be issued under section 11B of the SEBI Act. In reply to the SCN Pix vide its letter dated April 06, 2013 submitted that every effort was being taken to resolve the complaint and the same would be resolved at the earliest. 3. I have considered the SCN, reply of Pix and other material available on record. I note that the investor complaint has been resolved on May 10, 2013. Considering the 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 against Pix and its directors, as contemplated in the SCNs issued to them. However,
In the matter of Pix Transmissions Ltd.
they are advised to take utmost care and be vigilant in future, in respect of redressal of investor grievances. The SCNs are accordingly disposed of.
Date: 13th August, 2014 RAJEEV KUMAR AGARWAL Place: Mumbai WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
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