sebi:AO/SBM/EAD-1/318/2018
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Facts / Headnote
Penalty imposed on Noticee
Provisions invoked
- s. 21
- s. 23E
- s. 23
- s. 23J
Regulations
- Reg. 103
Parties
- SMS Techsoft (India) Ltd
Holding
The Noticee, SMS Techsoft (India) Ltd, violated Clause 54 of the Equity Listing Agreement read with Section 21 of the SCRA by failing to maintain a functional website, and is liable for a penalty of Rs. 3,00,000/- under Section 23E of the SCRA.
Full text
Page 2 of 12 prohibited from buying, selling or dealing in the securities market either directly or indirectly in any manner whatsoever till further directions.
Page 3 of 12 APPOINTMENT OF ADJUDICATING OFFICER 3. The undersigned was appointed as the Adjudicating Officer, vide communique dated September 08, 2016, under Section 23-I(1) of the SCRA read with Rule 3 of Securities Contracts (Regulation) (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 2005 (hereinafter referred to as ‘Adjudication Rules, 2005’) to inquire into and adjudge under the provisions of Section 23E of the SCRA, the aforementioned alleged violation of the provisions of Clause 54 of the Equity Listing Agreement read with Section 21 of the SCRA, by the Noticee.
Page 4 of 12 5. Vide letter dated January 10, 2018, Noticee submitted its reply to the SCN, inter-alia, requesting for an opportunity of hearing in the matter. Subsequently, Noticee made several submissions to SEBI, in response to the SCN, vide its letters dated January 16, 2018, February 27, 2018, April 11, 2018, May 03 , 2018, April 25, 2018 and May 07, 2018. I observe that apart from making general submissions in the matter, Noticee did not furnish any specific reply w.r.t the allegations levelled against it regarding non- maintenance of functional website. In the interest of natural justice, Noticee was granted an opportunity of hearing in the said matter on August 24, 2018. The Authorised Representative (AR) on behalf of the Noticee viz. Mr Bhrugesh Brahmbhatt (Advocate) appeared for the hearing on the stipulated date and reiterated the submissions made by the Noticee vide its abovementioned letters. Thereafter, vide letter dated August 24, 2018, Noticee also made following submissions: a. The Noticee at present is dormant and facing economic problems. b. The Noticee requested for reduced economic burden. c. The Noticee stated that it will make the payment for any default that has occurred.
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Source: SecMarx — sebi:AO/SBM/EAD-1/318/2018. 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.