September 30, 1998
PR No. 271/1998

NEHA EXPORTS LIMITED - DEBARRED FOR THREE YEARS FROM ACCESSING CAPITAL MARKET
PRIMARY MARKET DEPARTMENT

Neha Exports Ltd. (NEL) came out with a public issue, in which Viniyoga International Ltd. (VIL) the associate concern of NEL, offered a safety net scheme. As per the terms of the prospectus, VIL offered to buy back from all resident original individual allottees, fully paid up equity shares upto 1,000 equity shares per allottee, at Rs.15/- per equity share including share premium of Rs.5/- per share. On the basis of several complaints received from the investors regarding the failure of NEL to fulfil the terms of the safety net scheme as contained in the prospectus, SEBI issued a showcause notice to NEL seeking an explanation as to why it should not be debarred from accessing the capital market, for its failure to honour the terms of the safety net scheme. NEL failed to submit a satisfactory response to the same. However, despite sending several notices to NEL to appear before the Board for a personal hearing, NEL failed to avail of any of the opportunities given to it by the Board. Therefore, the Chairman, SEBI, vide his order dated September 2, 1998 issued directions under Section 11B of the SEBI Act, 1992 debarring M/s. Neha Exports Ltd., its promoters, associates and its group companies, from accessing the capital market through a public and rights issue for a period of three years from the date of the order.