WTM/RKA/EFD/38/2016

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 Bagri Minerals and Chemicals Limited
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1. Bagri Minerals and Chemicals Limited (hereinafter referred to as 'Bagri Minerals' or the company) is a
company incorporated under the Companies Act, 1956 having its registered office at 56, II, Bhoiwada,
Mumbai 400 002 Maharashtra. The shares of the company are listed on Ahmedabad Stock Exchange
Limited.
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 Bagri Minerals 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
three 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.
3. Since the company did not obtain SCORES authentication and failed to redress the investor grievances,
SEBI issued Show Cause Notices (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. However, the SCN
returned undelivered from the registered office address of the company, with a remark "not known'. The
SCN was resent to the company on May 02, 2014 through registered post, however the SCN again
returned undelivered. Subsequently, the SCN was served upon the company on its registered office
address by way of affixture on October 09, 2014. However, the company did not submit its reply to the
SCN.

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In the matter of Bagri Minerals and Chemicals Limited
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4. Opportunity of personal hearing was granted to the company on January 28, 2016 and notice to that
effect was served on the company by way of affixture on its registered office address. However, the
company chose not to appear for the personal hearing on the scheduled date. I note that sufficient
opportunities have been granted to the company and it is not keen to avail the same. I 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.
5. I note that the company has not obtained SCORES authentication, as required under SEBI circular
dated August 13, 2012, till date. I further note from the SCN that there were three investor complaints
pending against the company for redressal.
6. I note that the investor complaints are pending unresolved since the year 2002. 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.
7. 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 Bagri Minerals
and Chemicals 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.
8. 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: March 18th, 2016
Place: Mumbai

RAJEEV KUMAR AGARWAL

WHOLE TIME MEMBER
SECURITIES AND EXCHANGE BOARD OF INDIA

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In the matter of Bagri Minerals and Chemicals Limited
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