sebi:AO/SM-LS/ERO/20/2016
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Facts / Headnote
Violation established; penalty of Rs. 1,50,000 imposed under Section 15HB
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Holding
The Noticee failed to obtain SCORES authentication in violation of SEBI Circulars CIR/OIAE/1/2012 and CIR/OIAE/1/2013, 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 1995 (hereinafter referred to as “Rules”) to enquire into and adjudge under section 15HB of SEBI Act for the alleged violation of SEBI circular by the Noticee. Pursuant to the transfer of Shri S V Krishanmohan, the undersigned was appointed as Adjudicating Officer vide Order dated June 22, 2015.
Page 3 of 5 9. The Noticee was required to comply with the SEBI Circulars within the stipulated time period as prescribed by SEBI. Since the Noticee did not comply with the SEBI circulars, vide letter dated December 02, 2013 the Noticee was advised to obtain SCORES authentication by December 18, 2013. It is observed that the Noticee once again failed and neglected to comply. The Noticee has now submitted that it has obtained SCORES registration. The Noticee further submitted that “Due to some unavoidable circumstances and unawareness of the required formalities this mistake has been done”. On verification from the department it is learnt that the Noticee was granted SCORES authentication as on February 04, 2016. Failure to comply with the directions of SEBI contained in the SEBI circulars and thereafter the directions contained in the letter dated December 2, 2013 amounts to repeated violation of the directions given by SEBI.
Page 4 of 5 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”
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Source: SecMarx — sebi:AO/SM-LS/ERO/20/2016. 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.