sebi:AO/SM-LS/ERO/17/2016

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

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Facts / Headnote

Violation established; penalty of Rs 2,50,000 imposed under Section 15HB

Provisions invoked

• s. 15
• s. 15H
• s. 15J

Holding

The Noticee violated SEBI Circulars CIR/OIAE/1/2012 and CIR/OIAE/1/2013 by failing to obtain SCORES authentication till date and is liable for monetary penalty under Section 15HB of the SEBI Act. A penalty of Rs 2,50,000 was imposed against the Noticee.

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 opportunity of personal hearing. Despite receipt of both the letters the Noticee has not appeared before me nor made any written submissions. On verifying from the department, it is also learnt that the Noticee has not obtained SCORES authentication even as on date. The Noticee has failed to reply to the SCN, appear for personal hearing and obtain SCORES authentication till date. I note that this conduct demonstrates the lackasadical attitude of the Noticee and is unbecoming of a listed company.

Page 4 of 5 13. In this regard, it is pertinent to note that the Hon’ble Securities Appellate Tribunal in the matter of Port Shipping Company Ltd. Vs. Securities and Exchange Board of India has held that :- “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 directions of SEBI. Therefore, in the facts of the present case appellant deserved higher penalty. However, after taking all the factors set out by the appellant as mitigating factors, the adjudicating officer of SEBI has imposed nominal penalty of Rs. 1,50,000/- as against the imposable penalty of Rs. 1 crore. In such a case, it cannot be said that the penalty imposed is excessive or unreasonable” (Emphasis supplied)

Source: SecMarx — sebi:AO/SM-LS/ERO/17/2016. 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.