sebi:AO/SBM/EAD/107/2018
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Facts / Headnote
Penalty imposed on Noticee for failure to obtain SCORES authentication
Provisions invoked
- s. 11
- s. 15
- s. 15H
- s. 15I
- s. 15J
Parties
- Monalisa Infotech Limited
Holding
Monalisa Infotech Limited was held liable for penalty under section 15HB of the SEBI Act for failing to obtain SCORES authentication as required by SEBI circulars, and a penalty of Rs. 1,00,000 was imposed.
Full text
Page 2 of 7 2. It was observed by SEBI that Monalisa Infotech Limited (hereinafter referred to as ‘Noticee’/‘Company’) had failed to obtain the SCORES authentication and thereby alleged to have violated SEBI Circulars No. CIR/OIAE/2/2011 dated June 03, 2011, CIR/OIAE/1/2012 dated August 13, 2012, CIR/OIAE/1/2013 dated April 17, 2013 and CIR/OIAE/1/2014 dated December 18, 2014. Therefore, adjudication proceedings have been initiated against the Noticee under the provisions of section 15HB of the SEBI Act, 1992 (hereinafter referred to as ‘SEBI Act’). As per the information/material made available, the shares of the Company were listed on the Bombay Stock Exchange (BSE) and Ahmedabad Stock Exchange (ASE).
Page 3 of 7 CONSIDERATION OF ISSUES AND FINDINGS: 6. I have carefully perused the facts and circumstances of the case and the material on record. The allegation against the Noticee is that it had failed to obtain the SCORES authentication, in violation of the Circulars issued by SEBI viz. CIR/OIAE/2/2011 dated June 03, 2011, CIR/OIAE/1/2012 dated August 13, 2012, CIR/OIAE/1/2013 dated April 17, 2013 and CIR/OIAE/1/2014 dated December 18, 2014. Therefore, it was alleged that Noticee was liable for penalty under the provisions of section 15HB of the SEBI Act.
Page 4 of 7 “..This Tribunal in the case of M/s. Vidarbha Industries Limited vs Securities and Exchange Board of India (Appeal No. 386 of 2014 decided on 01.12.2014), under somewhat similar circumstances, has observed that “In these circumstances, since the appellant being a listed company, failure on part of the appellant to comply with the SEBI circular dated April 17, 2013 constitutes violation of SEBI circular for which penalty imposable under Section 15 HB of SEBI Act is Rs. 1 lac per day or Rs. 1 crore whichever is less. Thus, in the present case, as against penalty of Rs. 1 crore imposable against the appellant, the AO of SEBI has imposed penalty of Rs. 2 lac which cannot be said to be arbitrary, excessive or unreasonable…...”.
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Source: SecMarx — sebi:AO/SBM/EAD/107/2018. 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.