sebi:AO/SBM/EAD/101/2017
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Facts / Headnote
Noticee held liable and penalty imposed under Section 15HB
Provisions invoked
- s. 15
- s. 15H
- s. 15I
Parties
- Prakash Solvent Extractions Limited
Holding
Prakash Solvent Extractions Limited failed to obtain SCORES authentication in a time-bound manner in contravention of SEBI SCORES circulars and is liable for penalty under Section 15HB of the SEBI Act. A penalty of Rs.1,00,000 was imposed as commensurate with the default.
Full text
Page 2 of 7 company to obtain SCORES authentication would not only be deemed as non- redressal of investor grievances, but, also indicate wilful avoidance of the same.
Page 3 of 7 (ii) SEBI vide email dated July 05, 2017, provided login id and password to the company and thereby provided authentication for SCORES to the Company. (iii) After obtaining the login id and the password, we logged in our account which was granted to us by SEBI vide their email dated July 05, 2017. A perusal of the complaint status as on September 01, 2017, it can be seen that there is no investor complaint against the Company. (iv) The shares of the company were last traded on September 26, 1997 and thereafter no trading in the shares of the company has taken place on stock exchange.
Page 4 of 7 user ID and the password for SCORES on July 5, 2017. Clearly, there was a huge delay on the part of the Noticee to comply with the SEBI direction on SCORES authentication. In this context, Hon’ble Securities Appellate Tribunal (SAT) has consistently held that the importance of complaints redressal system initiated by SEBI in June, 2011 cannot be undermined and its sanctity has to be maintained by all the listed companies. It was obligatory on the part of the Noticee to obtain the SCORES authentication within the time limit prescribed by SEBI through the aforementioned Circulars on SCORES. In this context, it is pertinent to refer to the observations of Hon’ble SAT in the matter of Acalta Trading Co. Ltd. vs. SEBI (decided on 20.12.2016) - " ….. Appellant company being a listed company was bound to comply with the direction issued by SEBI from time to time. It was obligatory on part of the appellant to redress the investors’ grievances within the stipulated time after obtaining SCORES authentication as per the repeated circulars issued by SEBI. Inspite of the letter addressed by SEBI on December 2, 2013 in that behalf the appellant had failed to do the needful. It is on record that the appellant had applied for SCORES authentication only on June 12, 2014 and the authentication was granted on June 13, 2014. Various reasons given by the appellant for not complying with the directions of SEBI within the stipulated time and the fact that the investors’ grievances have
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Source: SecMarx — sebi:AO/SBM/EAD/101/2017. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.