WTM/RKA/EFD/ 63 /2015

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 Shatrunjay Extrusions Limited
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1. Shatrunjay Extrusions Limited (hereinafter referred to as SEL / company) is a company
incorporated under the Companies Act, 1956 having its registered office at 135, Shivkrupa
Industrial Estate, LBS Marg, Vikroli West, Mumbai 400083. The shares of the company
are listed on Ahmedabad Stock Exchange Limited (ASE).
2. SEBI vide its circular no. CIR/OIAE/1/2012 dated August 13, 2012 directed all companies
whose securities are listed on stock exchanges to obtain SCORES authentication by
September 14, 2012. However, since certain companies including SEL did not obtain
SCORES authentication within the time period specified in the aforementioned circular, a
public notice was issued on January 13, 2013, advising inter alia the companies to obtain
SCORES authentication within seven days from the date of the advertisement, failing which
SEBI would be constrained to initiate appropriate enforcement actions. However, the
company still failed to obtain SCORES authentication. It was also observed that six investor
complaints were pending against the company. SEBI vide its letter dated February 15, 2013
once again advised the company to obtain SCORES authentication and to redress the
investor complaints pending against it but the said letter returned undelivered.
3. Since the company did not obtain SCORES authentication and failed to redress six investor
grievances, SEBI issued Show Cause Notice dated March 28, 2013 (hereinafter referred to as
SCN) to the company calling upon it to show cause as to why suitable directions including
direction to restrain it from accessing the securities market for a specified period should not
be passed under section 11B of the Securities and Exchange Board of India Act, 1992 (SEBI
Act). The SCN issued to the company was sent on its registered office address but it was
returned undelivered. On January 3, 2014, the SCN was once again sent through Registered
Post Acknowledgement Due to the registered office address of the company. The SCN was again
returned undelivered.
4. It was observed from the website of Ministry of Corporate Affairs (MCA) that there is no
change in the registered office address of the company. Further, the company has defaulted
in filing Form DIN3/ Form 32 with Registrar of Companies (RoC) therefore, the details
of directors of the company were not available.
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5. Thereafter, on January 30, 2014 the SCN was served on the company by way of affixture at
its registered office address and one alternate address available on record. An opportunity of
personal hearing was granted to the company on May 13, 2014 and a notice in that regard
was sent to the registered office address of the Company on April 25, 2014 which was
returned undelivered. Thereafter, the notice to this effect was served on the company on
April 26, 2014 by way of affixture at its registered office address and another alternate
address. However the company chose not to appear for the personal hearing on the
scheduled date.
6. I note that sufficient opportunities to appear for hearing have been granted to the company
and it is not keen to avail the same. I further note that the company has not even filed any
written reply/submission to the SCN. In view of these facts and circumstances, I deem it
appropriate to decide the matter on the basis of material available on record.
7. I note that as on June 11, 2015 the company had not obtained SCORES authentication, as
required under SEBI circular dated August 13, 2012. I further note that as on June 11, 2015
all the investor complaints as indicated in SCN were pending against the company for
redressal. The details of five such complaints are mentioned in the following Table:
Details of the complaints
Sr.
no.

Complaint (New)
Registration No.

Nature of Complaint

Date of
Receipt

SEBIP/MH01/9114156/1

Non-receipt of shares after Transfer

17/08/2001

SEBIP/MH11/0000935/1

Non-receipt of securities after

transmission

03/06/2011

SEBIP/MH11/9102742/1

Non-receipt of shares after

conversion/endorsement/consolidati
on/splitting

20/04/2011

SEBIP/MH12/0003893/1

Non-updation of address/signature
or correction, etc.

29/03/2012

SEBIP/MH12/0003893/2

Others

29/03/2012

8. I note that the investor complaints are pending unresolved since the year 2001. In addition
to the obligations under the provisions of Companies Act, 1956/2013, 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. 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.
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9. 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 against the company
as contemplated in the SCN issued to it. 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 Shatrunjay Extrusions Limited from accessing the securities market and
from buying, selling or dealing in securities, directly or indirectly, in whatsoever manner, till
it obtains SCORES authentication in terms of the SEBI circular dated August 13, 2012 and
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.
10. As the company is in default of filing Form DIN3 / Form 32 with the RoC, a copy of this Order
shall be forwarded to the RoC, Mumbai for information and action that may be deemed
appropriate in respect of failure of Shatrunjay Extrusions Limited.
11. 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: July 1st, 2015

Place: Mumbai

RAJEEV KUMAR AGARWAL

WHOLE TIME MEMBER
SECURITIES AND EXCHANGE BOARD OF INDIA

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