BUY BACK SCHEME OF STERLITE INDUSTRIES INDIA LIMITED IN 2002
ABU FATEH
(Querist) 30 August 2009
This query is : Resolved
Sir
Subject: Wrongful Buy-Back of shares by STERLITE INDUSTRIES (INDIA)LIMITED
in 2002.
As per the letter sent by STERLITE INDUSTRIES (INDIA) LIMITED in late June 2002,I had came aware to caution of buy-back scheme by the aforesaid company.Instinctly I was NOT interested in favor of the buy-back and was deliberating on the same.
In the meanwhile I was keeping ill health and encountering some personal family issues and travelling.But I did sent the option form along with the cheque on 21st June 2002.
I had NOT encashed the cheque and had returned the same. In late August I got a balance from my DP, The Stock Holding Corporation of India (SHCIL), stating clearly the debit of my shares, 190, directly from Demat A/c.I was much surprised at this. When I inquired, I got the remark that it was confirmed under some corporate actions.
Immediately I wrote a letter to the erstwhile Registrar, Sharepro Services demanding the explanation. For this I never got any correspondence. Further I stated
explanation from my DP, but they asked to refer to the company. It was, again, in December 2002 I got a cheque towards the settlement of share purchased by the company.
(Details of my DP and Demat A/c.
DP: The Stock Holding Corporation of India (SHCIL).
I was much irritated! They never explained the correct context. Again I wrote to the RTA, Sharepro Services. With no response in a month I was much piqued. Again I wrote to the RTA.On the contrary I got TWO cheques, ONE for the redemption of the NCD (non-convertible debenture), part of the scheme-of-arrangement of the buy-back offer, and the interest warrant too.
As in the spirit to point my TRUE concerns and get Justice I rejected that too and wrote a letter corroborating the same along with un-enchashed cheques.
Later I didn’t like the response from the RTA of the company. I made calls to the then secretary; Mr. Kahndalvala.He just promised that the RTA shall respond to me the sooner. Mean while I also wrote to the SHCIL.Besides that I wrote to the SEBI.
After ALL this I got the first response from the Sharepro Services along with new cheques.
In that they mentioned that they didn’t receive my Option form by the deadline of 21st June 2002.
Straight away I felt infuriated, at this concept of sending the cheques and NOT indulging into the core of the matter or proper explanation.
It was then that I escalated the matter and issued a Legal Notice to the company along with copy to SEBI.
Again the explanation and the text of the letter were same, with further issue of fresh cheques to settle the matter.
I never accepted ANY of the cheques and never encashed the same.
This was in tandem to my spirits waiting for justice.
Again when I started to correspond, the RTA changed to Karvy Computershare Private Limited.
This time when I wrote an email to Karvy, unearthing the same matter, I did come to know about the stir made by the Bombay High Court case of buy-back scheme of Sterlite Industries against the SEBI and even the ranks of Union of Government (India).
Also I came to know that the court ruling did provide for something,” safety-net" and had extended the last date by approx. 4(four) months.
The company never sent any communication for this! Also if this was the case then my exercise of Option form with return and further rejection of cheques becomes perfectly valid.
Above all, the company should have given priority to me for my exercise of NOT yielding to the buy-back of my shares.
But ALL the while neither did the company secretary nor did the RTA inform of ANY such developments.
Is this NOT a case of ill intensions (of the company) against the determined intentions (No encashment/rejection of cheques) of simple and true investors?
Under this context, the RTA and company should have NOTED that as per my Option form and subsequent rejection of cheques the debit of shares is legally wrong and NOT furnishing with full and correct i
ABU FATEH
(Querist) 31 August 2009
Hi Somnath
Request you to please provide your contact number.I would like to talk to you and know a little better, if possible.
Regards
Abu Fateh.
