Action in respect of vanishing company – Cilson Finance and Investment Limited. (CFIL)
PRIMARY MARKET DEPARTMENT

M/s.CFIL came out with a public issue of 10,00,000 equity shares of Rs.10/- each for cash at par in May 1995 aggregating Rs.100.00 lacs for listing its shares at Magadh, Calcutta, Mumbai and Delhi Stock Exchanges vide its prospectus dated 18.4.95. 


It was found that the Company was not complying with the requirements of listing agreement as well as other relevant legal and statutory requirements. Further, physical verification conducted by Delhi Stock Exchange revealed that the company was not located in its registered office address.


The Task Force on Vanishing Companies pertaining to Northern Region comprising of DCA Officers, SEBI Officials and concerned Stock Exchange Officials) in its meeting held on August 16, 2002, identified CFIL as non traceable. SEBI issued notices to the Company. After due process, vide order dated 27th December 2002, u/s 11B of the SEBI Act, 1992, SEBI directed the company to disassociate itself in every respect from the capital market related activities and not to access the capital market for a period of five years, i.e. more specifically, they shall not be allowed to raise funds from the capital market, deal in securities and shall also not be or be associated with any of the intermediaries in the capital market for a period of 5 years. Further, the public companies in which the following directors of CFIL viz., Shri B M Jha, Shri C M Jha, Shri L K Jha and Shri S C Jha. hold controlling or substantial interest shall not be allowed to raise funds from the capital market for a period of five years.

These directions are being issued without prejudice to the right of SEBI to take any other action as deemed fit, under provisions of law, against the Companies and their Directors.