sebi:CFD-DCR/WDIL/AO/DRK-DS/EAD3-431/97-2013
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Facts / Headnote
Penalty imposed on the noticee for delay in complying with Regulation 8(3) of the SAST Regulations, 1997
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 8(3)
- Reg. 8(1)
Parties
- White Diamond Industries Ltd.
Holding
The noticee, White Diamond Industries Ltd., was held liable for delay in complying with Regulation 8(3) of the SAST Regulations, 1997, and a penalty of Rs. 2,25,000 was imposed under Section 15A(b) of the SEBI Act, 1992.
Full text
Page 2 of 8 proceedings of the Whole Time Member appointing Adjudicating Officer dated February 15, 2013. SHOW CAUSE NOTICE, HEARING AND REPLY
Page 3 of 8 6. However, the said SCN came back undelivered with the remark "office shifted". Thereafter, vide letter dated May 03, 2013, the SCN was forwarded to the new address of the noticee through HDAD and was served on the noticee.
Page 4 of 8 of the Company have been penalized by SEBI for the purported non- compliance of Regulation 8(1) and 8(2) of SEBI SAST Regulations, 1997 vide two separate Orders both dated 31.05.2013 of the Adjudication Officer. b. We state that since we were not in charge of the Company when the compliance with Regulation 8(3) was purportedly not done, we deny that the omission thereof observed in the said SCN was committed by us. Nevertheless, it is humbly submitted that the Company can adhere to the said Regulation only when it is duly informed about the change by the Promoters therein which was not done in the instant case and thereby the Company is deemed not in default from its responsibility to adhere with the Regulation 8(3) of the SEBI (SAST) Regulations. c. It may be appropriate here to add that no wrongful gains were made by the Company by the purported noncompliance of erstwhile promoters. It was an inadvertent error by the erstwhile promoters and the Company being not informed about the change may be deemed to have been absolved of its responsibility under Regulation 8(3) of SAST Regulations.
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Source: SecMarx — sebi:CFD-DCR/WDIL/AO/DRK-DS/EAD3-431/97-2013. 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.