WTM/RKA/EFD/137/2015

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 Prime Petro Products Limited
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1. Prime Petro Products Limited (hereinafter referred to as the company) is a company
incorporated under the Companies Act, 1956 having its registered office at 505, Swastik
Chambers, CST Road, Chembur, Mumbai 400071.
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 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.
3. However, since certain companies including Prime Petro Products Limited 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 fifteen
investor complaints were pending against the company.
4. Since the company did not obtain SCORES authentication and failed to redress fifteen
investor grievances, SEBI issued Show Cause Notice (SCN) dated March 28, 2013 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 SEBI Act. The SCN issued to the company was sent on its registered
office address. The SCN returned undelivered from the registered addresses of the company.
On January 7, 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.
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In the matter of Prime Petro Products Limited
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5. 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. Thereafter, on February 13, 2014 the
SCN was served on the company by way of affixture at its registered office.
6. An opportunity of personal hearing was granted to the company on September 22, 2015. The
notice to this effect was served on the company on September 11, 2015, by way of affixture at
its registered office. However the company chose not to appear for the personal hearing on the
scheduled date.
7. I note that sufficient opportunities 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.
8. I note that as on July 27, 2015 the company had not obtained SCORES authentication, as
required under SEBI circular dated August 13, 2012. I further note that as on July 27, 2015
fourteen complaints as indicated in SCN were pending against the company for redressal, the
details of which are mentioned in the following Table:
Details of the complaints
Serial No. Registration No

Complainant Name

Date of Receipt

1.

SEBIP/DH04/9101904/1

K Sanjay Kumar

23/02/2004

2.

SEBIP/DH04/9101944/1

Radha Bansal

30/06/2004

3.

SEBIP/DH05/9102366/1

Sanjay Abar

05/10/2005

4.

SEBIP/DH05/9102450/1

Veena Murlidhar Punjabi

21/12/2005

5.

SEBIP/DH06/9102740/1

City Union Bank Limited

05/10/2006

6.

SEBIP/DH06/9102741/1

Gadigeppa Laxmappa Bhandiwad

13/10/2006

7.

SEBIP/DH06/9102753/1

M S Agrawal

10/11/2006

8.

SEBIP/DH07/9102827/1

K Jaganathan

21/02/2007

9.

SEBIP/DH07/9102952/1

Ramesh Chand Sodhia

26/09/2007

10.

SEBIP/DH07/9102967/1

Devidas Khushaldas Dhankani

17/10/2007

11.

SEBIP/DH07/9102988/1

Natvarlal Parshottamdas Patel

02/11/2007

12.

SEBIP/DH08/9103246/1

Surat Commercial Corporation

26/09/2008

13.

SEBIP/DH94/9100006/1

Arunkumar Lal Karan

24/06/1994

14.

SEBIP/MH12/0008599/1

Purvang J Shah And Jitendra Shah

12/11/2012

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In the matter of Prime Petro Products Limited
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9. I note that the investor complaints are pending unresolved since the year 1994. In addition to
the obligations under the provisions of Companies Act, 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.
10. 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 show cause notice 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 Prime Petro Products 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.

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: October 15th, 2015

Place: Mumbai

RAJEEV KUMAR AGARWAL

WHOLE TIME MEMBER
SECURITIES AND EXCHANGE BOARD OF INDIA

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In the matter of Prime Petro Products Limited
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