WTM/RKA/EFD/39/2016

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 Lawa Coated Papers Limited
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1. Lawa Coated Papers Limited (hereinafter referred to as 'Lawa Coated Papers' or the company) is a
company incorporated under the Companies Act, 1956 having its registered office at 202, Shripal
Industrial Estate, Oshiwara, Jogeshwari (West), Mumbai 400 102. The shares of the company are listed
on Delhi Stock Exchange.
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 'Lawa Coated Papers' 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 seven 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. The SCN returned
undelivered from the registered office address of the company. Subsequently, the SCN was served upon
the company on its registered office address by way of affixture on February 07, 2014. Later, the SCN
was also sent to the company on its registered office address by registered post, which was delivered and
the acknowledgement is on record.
4. The company did not submit its reply to the SCN. Opportunity of personal hearing was granted to the
company on December 15, 2015 and notice to that effect was served on the company by way of
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In the matter of Lawa Coated Papers Limited
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affixture on its registered office address. However, the company chose not to appear for the personal
hearing on the scheduled date. Another opportunity of personal hearing was granted to the noticee on
January 28, 2016. However, the company again 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 seven investor complaints
pending against the company for redressal.
6. I note that the investor complaints are pending unresolved since the year 1997. 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 Lawa Coated
Papers 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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