Securities and Exchange Board of India (SEBI) had included Pincon Spirit name in list of Shell Companies. Mr. Arup Thakur, CFO of Pincon Spirit was shocked to hear about such a drastic step taken by SEBI.
What had happened was uncalled for. The Company has Liquor and FMCG Business. With 6 Manufacturing Units in West Bengal, the company has wide market. Pincon Spirit has had a Clean Record with SEBI and has been complying with all regulatory formalities from time to time.
Mr. Thakur had told in an interview that he will be taking urgent steps to mitigate this issue. Very true to his words, he did take immediate action and appealed with THE SECURITIES APPELLATE TRIBUNAL, Mumbai. The hearing was held and decision made on 11th Aug 2017 where the Appellate Tribunal ordered the Reversal of Suspension.
Apparently, it is understood from the order copy of the appeal that SEBI, without conducting any investigation and without hearing the company, solely based on the letter dated 09.06.2017 received from the Ministry of Corporate Affairs (MCA), SEBI passed ex-parte order on 07.08.2017 directing the stock exchanges to treat the company as a ‘suspected shell company’ and suspended the daily trading in the securities.
SEBI prima-facia agreed that the company’s records and turnover for the past three years are correct.
It was decided that SEBI will direct the stock exchanges to reverse their decision in respect of the company (Pincon Spirit) as expeditiously as possible.