June 19, 1998
PR No. 156/1998

Prosecution Launched by SEBI

Investigation, Enforcement & Surveillance Dept.

SEBI has filed a criminal complaint in the Court of 37th Metropolitan Magistrate at Esplanade, Mumbai against M/s Vatsa Corporation Ltd. having its Registered Office at "Vatsa house", Janmabhoomi Marg, Fort, Mumbai 400 001 and Shri Pradeep Vakil, its Managing Director, Ms. Sweta R.Parwani (Company Secretary), Shri Arvind Mathur, Shri Ketan Shah, Shri M.N.Acharya, Shri N.J.Brahmbhatt, Shri Sudhir Modi and Shri Anil Khanna, its directors (present and past) for non-redressal of investors complaints regarding non-despatch of share certificates after their lodgement for transfer and non-payment of dividend within the stipulated time after its declaration. 
 
Vatsa Corporation Ltd. is the Company against whom SEBI has received largest number of investors complaints. The Stock Exchange, Mumbai (BSE) and NSE has also reported that this Company has topped in the list of the companies against whom the largest number of investors complaints are pending unresolved in last several months. The Company and its directors were given number of opportunities to make their default good but they have failed to come out with a positive response and it has been observed that the Company and its management has remained indifferent to the investors grievances. As on May 31, 1998 there were 5,125 complaints pending unresolved against the Company. 
 
The prosecution was launched under Section 621 read with Sections 113 and 207 of the Companies Act, 1956 under the powers delegated to SEBI to take action under these provisions of the Companies Act.