Order against Indo Biotech Foods Limited

 CO/257/IGG/10/2002

 
 SECURITIES AND EXCHANGE BOARD OF INDIA

DIRECTIONS UNDER SECTION 11B OF THE SEBI ACT, 1992 TO

INDO BIOTECH FOODS LTD., MUMBAI & ITS DIRECTORS

Securities and Exchange Board of India (SEBI) has received several complaints from investors against Indo Biotech Foods Limited (hereinafter referred to as IBF) over a period of time. The same were forwarded to IBF for redressal. As on September 30, 2002, IBF has a total of 32 investor grievances pending against it.

On failure to redress the pending investor grievances by IBF, SEBI vide letter dated April 3, 2002 advised IBF to meet SEBI's officials in connection with redressal of investor's grievances pending against it. However, IBF failed to remain present.

Subsequently, SEBI vide letter dated May 24, 2002 called upon IBF to show cause as to why appropriate action/proceedings under Sections 11B & 27 of SEBI Act, 1992 read with Section 621 of the Companies Act, 1956 should not be initiated against IBF for the alleged violation of the provisions of Section 73 and 113 of the Companies Act, 1956.

However, till date SEBI has not received any reply to the show cause notice from IBF.

Now, therefore, in exercise of the powers conferred upon me under Section 11B of the SEBI Act, 1992, I hereby direct IBF to redress the investor's grievances pending against IBF within a period of one month from the date of this order failing of which SEBI would be constrained to initiate actions as under without giving any further notice:

1. Prosecution under Section 621 of the Companies Act, 1956 for the alleged violation of the provisions of Section 73 and 113 of the aforesaid Act.

2.IBF/its directors would be debarred from dealing in and/or accessing the capital market for a period of 5 years.
 

Place : Mumbai 
Date : October 14 , 2002  

G. N. BAJPAI
Chairman
Securities and Exchange Board of India