sebi:AO/SBM/EAD-3/83/2017
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Facts / Headnote
Penalty imposed on the Noticee for failure to redress investor complaints
Provisions invoked
- s. 15
- s. 15C
Parties
- GCV Services Ltd.
Holding
The Noticee, GCV Services Ltd., was held liable for penalty under Section 15C of the SEBI Act for failing to redress 41 pending investor complaints within the time specified by SEBI, and a penalty of Rs. 3,00,000 was imposed.
Full text
Page 2 of 16 redress the said pending complaints within the stipulated time period prescribed by SEBI. 2. As per records, it is observed that the Noticee had obtained the SCORES authentication (including the user ID and password) on July 11, 2011. Vide letter dated December 29, 2011, SEBI had instructed the Noticee to take necessary steps to redress the pending complaints within 21 days from the date of receipt of the above said letter and also advised the Noticee to submit a status report within the said period. Since the Noticee failed to take steps to redress the complaints, vide letters dated January 31, 2012 and February 10, 2012, SEBI had once again advised the Noticee to redress the pending complaints and submit a status report on the same within 7 days.
Page 3 of 16 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING 5. Show Cause Notice ref No. A&E/GCV/DRK/AS/11935/2012 dated May 29, 2012 (hereinafter referred to as ‘SCN’) was issued to the Noticee in terms of Rule 4 of the Adjudication Rules, to show cause as to why an inquiry should not be initiated against the Noticee and penalty be not imposed under Section 15C of the SEBI Act. The SCN issued to the Noticee inter alia mentioned the following: a. It was alleged that SEBI had vide its email dated July 11, 2011 directed the Noticee to redress the pending investor complaints received against it in the SCORES. Since there was no reply from the Noticee, a formal letter to the Noticee was issued by SEBI vide letter dated December 29, 2011 advising the Noticee to redress the complaints within 21 days from the date of receipt of the said letter and the Noticee was also advised to submit a status report within the said period. b. Since the Noticee had failed to redress the complaints, SEBI sent another letter dated January 31, 2012 and subsequently issued another reminder vide letter dated February 10, 2012 to the Noticee with instructions to resolve the pending complaints received from the investors and submit the status report within seven days from the date of receipt of the said letter. It was mentioned to the Noticee by SEBI that failure on its part to take necessary steps to redress the complaints would invite appropriate regulatory action, including initiation of adjudication pr
Page 4 of 16 d. It was alleged that the Noticee had failed to take necessary steps to redress the pending complaints. Therefore, it was alleged that Noticee was liable for penalty under the provisions of Section 15C of the SEBI Act.
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Source: SecMarx — sebi:AO/SBM/EAD-3/83/2017. 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.