Jenson & Nicholson To Challenge Ban

Paints major Jenson and Nicholson has decided to challenge the two-year ban imposed upon it by the Securities and Exchange Board of India (Sebi).

J S Chatterjee, director of finance of the company, told Business Standard: "We will challenge or go for an appeal against the decision as soon as we get a detailed copy of the report."

He added it is still too early to make proper plans or arrangements before going through the full report. The company expects to get its hands on the report any day now.

But, according to Chatterjee, for the time being, the company is negotiating term loans with various financial institutions and intends to tide over the crisis through borrowings.

 

The company was earlier negotiating with its technical collaborators, Tikkurila OY, for a possible private placement of its shares with the Finnish paints major. Referring to this, Chatterjee said: "Under the current circumstances, it is a little premature for us to come to any decisions about it."

J&N has been directed by Sebi not to access the capital market through rights and public issue for at least two years, because according to Sebi, the company had cancelled its rights issue worth Rs 16.8 crore, which closed on October 11, 1996.

According to Sebi, a company can not cancel the rights issue after the completion of all the formalities pertaining to the issue.