sebi:AO/SBM/EAD-3/151/2018
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Facts / Headnote
Penalty imposed on the Noticee for failure to maintain a functional website
Provisions invoked
- s. 21
- s. 23E
- s. 23
- s. 23J
Regulations
- Reg. 103
Parties
- M/s P.M. Telelinnks Limited
Holding
The Noticee, M/s P.M. Telelinnks Limited, violated Clause 54 of the Equity Listing Agreement read with Section 21 of the SCRA by failing to maintain a functional website for more than three years beyond the mandated deadline of April 1, 2011, and a penalty of Rs. 3,00,000 was imposed under Section 23E of the SCRA.
Full text
Page 2 of 16 of the company who are responsible for assisting and handling investor grievances, compliance with corporate governance norms etc. In view of the aforesaid failure on the part of the Noticee to maintain a functional website, it is alleged that Noticee has violated the provisions of Clause 54 of the Equity Listing Agreement (hereinafter referred to as ‘Listing Agreement’) read with Section 21 of the Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as ‘SCRA’)
Page 3 of 16 a. SEBI, during the course of investigation into the trading and dealings of several entities in the scrip of PMTL, observed certain irregularities committed by the Noticee in respect of non-maintenance of functional website by the Noticee. b. It was alleged that Noticee has violated the provisions of Clause 54 of the equity listing agreement with BSE as it had failed to maintain a functional web site containing basic information about the company e.g. details of its business, financial information, shareholding pattern etc. c. Further, it is alleged that the website mentioned by the Noticee in its filings made with BSE viz. www.suranaudyog.com, was of Golkonda Engineering Enterprises Ltd (which is a group entity of the Noticee) and the said website was not that of the Noticee. d. In view of the failure on the part of the Noticee in maintaining a functional website, it is alleged that Noticee has violated the provisions of Clause 54 of the Equity Listing Agreement read with Section 21 of the SCR Act. e. The alleged violation of the aforementioned provisions, if proved, make the Noticee liable for penalty under Section 23E of the Securities Contracts (Regulation) Act, 1956.
Page 4 of 16 a) We would like to mention that the amendments to the Listing Agreement came with effect from 1st April, 2011 and therefore, we took steps to construct our website and to start with we thought of preparing one common website for all our group companies. Hence, vvww.suranaudyog.com was constructed earlier wherein details of all the group companies was mentioned since our group was known in the business circles by the name of Surana Udyog. The same details were given to BSE in compliance with the said clause and they never raised any objection. b) When the information was sought from us during the Investigation proceedings, the website for P.M. Telelinnks was under construction and hence, we gave the address of the website of www.suranaudyog.com . However, our website is now functional and its address is www.pmtele.com, which is reflected on the BSE website and the screenshots of the aforesaid website is enclosed at Annexure B. Considering the above, we would like to mention that we are in compliance with the Listing Agreement and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In view of the same, we request that the proceedings initiated vide the above said notice may be dropped. c) We submit that majority of the information displayed on the website of PMTL at present i.e. www.pmtele.com was already available on the website of Surana Udyog and there was no non-disclosure on our part. d) We have not committed any irregularities in mainta
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Source: SecMarx — sebi:AO/SBM/EAD-3/151/2018. 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.