sebi:EAD/PM-NK/AO/10/2017-18
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Facts / Headnote
Penalty of Rs. 1,00,000 imposed under Section 15HB of the SEBI Act for failure to obtain SCORES authentication; matter decided ex-parte
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Parties
- M/s Sanchana Trading & Finance Limited
Holding
The Noticee violated SEBI Consolidated Circular CIR/OIAE/1/2014 dated December 18, 2014 by failing to obtain SCORES authentication. A monetary penalty of Rs. 1,00,000 under Section 15HB of the SEBI Act was imposed on M/s Sanchana Trading & Finance Limited.
Full text
Page 2 of 10 to obtain SCORES authentication would not only be deemed as non-redressal of investor grievances, but also indicate wilful avoidance of the same and that failure to take action under the rescinded circulars before the date of issuance of SEBI Consolidated Circular, shall be deemed to have been done or taken or commenced under the provisions of SEBI Consolidated Circular.
Page 3 of 10 6. The SCN was delivered to the last known address of the Noticee at M/s Sanchana Trading & Finance Limited 307-B, Trade world, Senapati Bapat Marg, Kamala Mills, Lower Parel, Mumbai – 400013. The Noticee was advised to file its reply within 14 days of receipt of the SCN. No reply was received from the Noticee. However, in the interest of natural justice, it was decided to provide an opportunity of personal hearing to the Noticee and hence a hearing notice EAD/AK/VG/18736/2017 dated August 7, 2017 was delivered at the aforesaid address of the Noticee to appear for personal hearing on August 29, 2017. However, neither did the Noticee appear on the date scheduled for the personal hearing, nor, has the Noticee filed any reply in the matter till date. After appointment of the undersigned as the Adjudicating Officer in the matter, in the interest of natural justice, it was decided to provide another opportunity of personal hearing to the Noticee and hence a hearing notice EAD//AO- PM/NK/28155/2017 dated November 15, 2017 was delivered at the aforesaid address of the Noticee to appear for personal hearing on November 27, 2017. However, neither did the Noticee appear on the date scheduled for the personal hearing, nor, has the Noticee filed any reply in the matter until date.
Page 4 of 10 authentication. The issues, therefore, that arise for consideration in the present matter are: a) Whether the Noticee has violated the provisions of SEBI Circular No. CIR/OIAE/1/2014 dated December 18, 2014 by failing to obtain SCORES authentication? 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 duly taking into account the factors mentioned in Section 15J of SEBI Act?
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Source: SecMarx — sebi:EAD/PM-NK/AO/10/2017-18. 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.