Order in the matter of Western Fruits and Vegetable Ltd.
- Order No.WTM/RKA/EFD/DRAII/178/2016
Ratio decidendi
The rule this decision rests on
Where a listed company that failed to obtain SCORES authentication and to resolve investor complaints, and against which show cause notices under section 11B have been issued, subsequently obtains authentication and has its pending investor grievances verified by SEBI as resolved, no direction under section 11B restraining the company or its directors from accessing the securities market is required, and the show cause notice is disposed of accordingly.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
WTM/RKA/EFD/DRA II/178/2016 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 Western Fruits and Vegetable Ltd. and its directors namely, Mr. Manoj Madhavrao Narwade, Mr. Ashokrao Eknathrao Vikhepati and Mr. Jalindar Shivaji Nimbalkar 1. Western Fruits and Vegetable Limited (hereinafter referred to as ‘the company’) is a listed company. 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. Western Fruits and Vegetable Limited did not obtain SCORES authentication and it failed to resolve 10 pending investor complaints. SEBI issued Show Cause Notices (SCNs) dated March 28, 2013 and September 02, 2014 to the company and its directors, namely, Mr. Manoj Madhavrao Narwade, Mr. Ashokrao Eknathrao Vikhepati and Mr. Jalindar Shivaji Nimbalkar, respectively, 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. 3. The company obtained SCORES authentication on August 11, 2014. Opportunity of personal hearing was granted to the company on July 05, 2016 when Mr. Manoj Narwade, Directors appeared and sought 30 days time to redress all the pending investor grievances, which was acceded to. 4. Now, SEBI has verified and confirmed that the said investor grievances have been resolved. 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 Western Fruits and Vegetable Ltd. and its directors namely, Mr. Manoj Madhavrao Narwade, Mr. Ashokrao Eknathrao Vikhepati and Mr. Jalindar Shivaji Nimbalkar as contemplated in the SCNs issued to them. The SCN is accordingly disposed of.
Sd/- Date: November 01, 2016 RAJEEV KUMAR AGARWAL Place: Mumbai WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
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