sebi:AO/SBM-ASR/EAD-3/10/2015
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Facts / Headnote
Penalty imposed on Noticee for failure to redress investor complaints
Provisions invoked
- s. 15
- s. 15C
Parties
- Tricom Fruit Products Limited (formerly known as Rids Securities Ltd)
Holding
The Noticee Tricom Fruit Products Limited was held liable for violating Section 15C of the SEBI Act, 1992 by failing to redress two pending investor complaints (of Shri Nilesh H Soni and Shri Dhaval N Soni) within the time specified by SEBI, and a penalty of Rs 3,00,000 was imposed. The complaint of Smt. Meenadevi Maloo was found to have been appropriately redressed by the Noticee.
Full text
Page 2 of 17 APPOINTMENT OF ADJUDICATING OFFICER 2. Shri D. Ravikumar was appointed as Adjudicating Officer (AO), vide Order dated May 10, 2013 under Section 15-I of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as 'SEBI Act') read with Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as „Adjudication Rules’) to inquire into and adjudge under the provisions of Section 15C of the SEBI Act for the alleged failure on the part of the Noticee to redress the three investor complaints pending against them and also their failure to submit the ATR in this regard. Subsequently, upon the transfer of Shri D Ravikumar, I have been appointed as Adjudicating Officer in the present matter vide Order dated June 22, 2015.
Page 3 of 17 complaints, two complaints were received from Shri Nilesh Harikrishnabhai Soni and his son Shri Dhaval N. Soni, both the persons residing at M-89 /1060, Panchvati Apartments, Sola Road, Naranpura, Ahmedabad. The contents / subject matter of the said two complaints were the same. The complaints of Shri Nilesh H Soni and Shri Dhaval N Soni were regarding alleged fraudulent transfer of 4200 shares of Rids Securities Ltd (which was the earlier name of Tricom Fruit Products Ltd) from the folio of Smt. Kiranben N. Soni, (who was the wife of Shri Nilesh H Soni and mother of Shri Dhaval N Soni and also the first holder in respect of the 4200 shares, as aforesaid). The third complaint against the Noticee was received from Smt. Meenadevi Maloo, complainant from Ahmedabad, and the same was regarding non-receipt of shares sent by her to the Noticee for transfer. c. In view of the above, it was alleged in the SCN that the Noticee has failed to take necessary steps to redress the three investor complaints within the prescribed time period specified by SEBI and also failed to submit the ATR through SCORES in respect of these complaints. It was also alleged that the Noticee had failed to respond to the SEBI letters dated January 22, 2013, February 15, 2013 and March 8, 2013. It was therefore alleged that the Noticee has violated the provisions of Section 15C of the SEBI Act.
Page 4 of 17 ensured that a detailed reply to the SCN along with the status on the pending complaints would be submitted by the Noticee by September 12, 2015.
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Source: SecMarx — sebi:AO/SBM-ASR/EAD-3/10/2015. 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.