sebi:AS/AO/08/2014
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Facts / Headnote
Penalty imposed ex-parte
Provisions invoked
- s. 15
- s. 15J
- s. 15C
Holding
The Noticee violated SEBI Circulars CIR/OIAE/2/2011, CIR/OIAE/1/2012 and CIR/OIAE/1/2013 by delay in obtaining SCORES authentication, non-submission of ATR and failure to redress 3 pending investor grievances within stipulated time, and a consolidated penalty of Rs.3,00,000 was imposed (Rs.2,00,000 under Section 15C and Rs.1,00,000 under Section 15HB).
Full text
Page 2 of 10 3. Based on the aforesaid observations, it was alleged that by failing to obtain SCORES authentication/ submit ATR and to redress the pending investor grievances within the stipulated time, the Noticee has violated the aforesaid SEBI Circulars No. CIR/OIAE/2/2011 dated June 03, 2011, CIR/OIAE/1/2012 dated August 13, 2012 and CIR/OIAE/1/2013 dated April 17, 2013. The alleged violation, if established, makes the Noticee liable for monetary penalty under Sections 15C and, 15HBof the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as 'SEBI Act').
Page 3 of 10 6. Earlier the then adjudicating officer issued Show Cause Notice(SCN) no. WRO/AO/SM/2529/2013 dated June 04, 2013 (hereinafter referred to as "SCN"), which was served on the Noticee by “Registered Post” in terms of the provisions of Rule 4 of the Rules requiring the Noticee to show cause as to why an inquiry should not be held against it and why penalty, if any, should not be imposed on the Noticeefor the alleged non-redressal of investor grievances within the stipulated time and failed obtain SCORES authentication and failed tosubmit ATR in this regardinspite of being called upon by SEBI in writing to do so.
Page 4 of 10 9. Despite receipt of the SCN/supplementary SCN, the Noticee has not filed any reply/written submissions to the allegations mentioned in the aforesaid SCN(s). Considering facts of the case, it was decided to conduct an inquiry in the matter and therefore an opportunity of personal hearing was granted to the Noticee before me on June 25, 2014. The intimation of the same was sent to the Noticee vide letter dated June 11, 2014. Despite receipt of the same, it has failed to turn up for the hearing on the said date, time and venue as mentioned in the notice. In the said communiqué it was also mentioned that if youfail to attend the meeting on the said date, time and venue, the mattershall be decided ex-parte based on the material available on record.
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Source: SecMarx — sebi:AS/AO/08/2014. 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.