Press Release
SUB : DEBARRING DEAFULTING COMPANIES AND DIRECTORS FROM ASSOCIATING THEMSELVES WITH THE CAPITAL MARKET IN ANY MANNER. ISSUED BY : PRIMARY MARKET DEPARTMENT
TEXT
In an earlier order dated 19th July 1999, SEBI had debarred 70 directors from associating themselves with the capital market in any manner for a period of 5 years. The order had given the promoters/directors an opportunity to make a representation to SEBI within one month. 12 directors have made a representation to SEBI and the same are under consideration. The remaining 58 directors Annexure 'A' have failed to make any representation to SEBI and final orders have been passed today against them debarring them from the capital market in any manner for a period of 5 years.
Earlier, a public notice was also issued on 20th September 1999 through which a show cause notice was given to 110 directors and 70 companies asking them to show cause as to why no action should be taken against them for their failure to comply with the listing agreement. Responses were received from 26 directors and 31 companies. The remaining 84 directors and 49 companies (out of 80 companies) have failed to respond to SEBI. An order is passed against these 49 companies Annexure 'B' and 84 directors' Annexure 'C' debarring them from the capital market for a period of 5 years.
The orders issued today and earlier to the above entities would mean that the directors and companies referred above are prohibited from raising resources from the capital market, deal in securities in any manner and also restricts their association with any capital market intermediary.
Further the matter is also under examination by the task forces for further action against these directors and companies as they may deem fit. For other companies of this type also, the action is under way.
