sebi:AO/SM-LS/ERO/12/2016

SEBI · SEBI · 2015-06-22 · S Madhusudhanan, Adjudicating Officer

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Facts / Headnote

Penalty imposed on Noticee for failure to obtain SCORES authentication

Provisions invoked

• s. 15
• s. 15H
• s. 15J

Holding

The Noticee was held liable for failing to obtain SCORES authentication as required by SEBI Circulars, constituting a violation attracting penalty under Section 15HB of the SEBI Act, and a penalty of Rs. 1,50,000 was imposed.

Full text

Page 2 of 5 transfer of Shri S V Krishanmohan, the undersigned was appointed as Adjudicating Officer vide Order dated June 22, 2015. SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING

Page 3 of 5 a) Whether the Noticee by failing to obtain SCORES authentication has failed to comply with SEBI Circular No. CIR/OIAE/1/2012 dated August 13, 2012 and CIR/OIAE/1/2013 dated April 17, 2013? b) Does the violation, if any, on the part of the Noticee attract monetary penalty under Section 15 HB of the SEBI Act? c) If so, what would be the monetary penalty that can be imposed taking into consideration the factors mentioned in Section 15J of the SEBI Act?

Page 4 of 5 investor and that the shares of the appellant company were not traded for more than six years, cannot be a ground to disobey the directions given by SEBI. Obligation to obtain SCORES authentication was not dependent on there being operating income or pending investor grievance or trading of shares on the stock exchanges. Admittedly, the appellant company continues to be a listed company and, therefore, it was obligatory on part of appellant company to obtain SCORES authentication within the time stipulated by SEBI. However, the appellant has consistently failed and neglected to comply with the directions of SEBI and it is only when SEBI initiated penalty proceedings, the appellant chose to comply with the

Source: SecMarx — sebi:AO/SM-LS/ERO/12/2016. 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.